What Are The Reasons Successful Small Business And Investors Do To Assure They Have Proper Business Lines Of Credit
Released on = August 29, 2007, 10:05 am
Press Release Author = Get Business Lines of Credit
Industry = Small Business
Press Release Summary = Seven Reasons Why Investor and Small Business Need Business
Lines of Credit
Press Release Body = Detroit, Michigan -- The reality is that if small investors and
business are down and out – either personally or in their business – nobody will
lend them a dime. If their riding high, people (and institutions) seem ready,
willing and able to open their wallet!
The best solution is to make sure they have access to money now, before they need
it. They don’t necessarily need cash in hand, either. Having a flexible line of
credit that they can use when they need it can be just as effective.
Here are seven great reasons for establishing a dependable source of money NOW,
rather than when the roof is caving in.
1. Timing is everything. At the risk of being redundant, nail down a dependable
source of cash before they need it. If a great opportunity comes up, they want to be
able to act immediately. If there’s an emergency, they don’t have time to start
looking for funds. Either way, cash – or its equivalent – can make the difference.
In short, opportunities don’t wait. And they can’t wait if there’s a crisis looming.
2. Make decisions from a position of strength. It is empowering to make a business
decision knowing they have a definite pool of money to work with. It brings a degree
of clarity that wishing, hoping and guessing can’t match.
3. Stay in control. In business, almost nothing can put them into a tailspin like a
significant financial squeeze. If they have to make payroll or meet an unexpected
expense, you’ll have to scramble to “pull forward” anything with a dollar sign
attached. Would they feel more in control if they had a pre-approved line of credit that they could tap if and when an emergency occurred?
4. Changing market conditions. In recent months, top mortgage lenders have closed
their doors or severely cut back programs for home buyers. Foreclosures are high.
The current housing and mortgage environment is creating pressure on business in
general. Unsecured credit is almost impossible to find. If they can find a line of
credit today, don’t wait.
5. Convenience. What could be more convenient than having a pre-approved line of
credit available that they can use with the ease of writing a check? They certainly
don’t want to jump through a lot of hoops every time they need to use the money. For
most people, ease of use, minimal hassles, and clear step-by-step processes are
worth the investment. After all, how much is your time and peace of mind worth? Find
a line of credit that is easy to get and easy to use.
6. Separate your personal assets from your business. Many entrepreneurs and small
business owners fall into the trap of using their own money and credit to build
their business. This can have a serious impact for the business owner. Consider the
implications. A business owner’s personal assets and credit can be eaten up quickly
if he or she acts as the bank. Also, personal debt can slam your debt-to-income
ratios, which could limit them if they wanted to buy that new dream home. Create a
line of credit for their business, instead.
7. Use Other People’s Money. Leverage is the name of the game. While they have to
consider the cost of money, the leverage you gain by being able to use OPM can make
the difference in creating wealth and positioning your business for success. A
business line of credit can provide start-up capital, consolidate debt, fund
business growth, and replace personal money used to fund business expenses.
Urvi Mehta, Co-founder of National Real Estate Network, in Detroit, said “That our
local real estate club is lucky to have Michael Ogorek attend our meetings as he is
an author and leading expert on business lines of credit. Michael Ogorek is an
entrepreneur and real estate investor. Michael coaches small business owners on
strategy, marketing, and business growth. His company provides unsecured lines of
credit for business owners, real estate investors, and small businesses nationwide.”
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