In this video, members of the Relax Teams share what are the important things to consider in financing a business and how they do it.
Are you a cash-based business where you only spend what you make? Did you apply for any bank financing? Are you using the right tools to finance your business? Whatever your answers are, this video will surely teach you a thing or two.
As shared by Randy Morgan in this video, there are quite a few different options to fund a business. However, you have to take into account how big the purchases are and how old or young the business is. Most people are doing a business line of credit, others need a revolving credit, and some might have to go through SBA.
More importantly, Randy shares about having a relationship with your current bank. The more the bank knows about you and your business, the better the relationship you have. And the better relationship you have, the more likely they’re willing to lend you money. Randy works with M&T Bank and he shared having a whole network of people determining rates. He explains how important it is to have a relationship with whoever you are banking with. Watch the video to further understand how using all resources is important in this digital world when it comes to business financing.
Having a cash-based company - Digital Maestro, a website and digital marketing agency, Paul Taubman shares how the pandemic has affected their receivables. However, they opted not to go out for any financing adding extra liability.
Sharing as well is Jonas DeVita of Access Commercial Doors using financing to get working capital. Jonas uses a credit card to purchase materials and making sure that he pays it off ahead of time and gets cash back.
Credit Card vs Debit Card
There is danger in attaching a credit card to the processing systems of a business. During these times of uncertainty using a debit card is safer unless you are 100% sure that you are making that amount of money. Young business owners however find using credit cards easier being able to track it in real-time, doing everything digitally, and enjoying the points they are getting.
Watch the video until the end to learn more about how the pandemic affected small business owners and how they adjusted their finances. Is this a good time to borrow money from the banks? Finish the video and find out.