Cash Flow Statement Source Of Cash Vs Use Of Cash Nobody Likes Paying Interest

You are searching about Cash Flow Statement Source Of Cash Vs Use Of Cash, today we will share with you article about Cash Flow Statement Source Of Cash Vs Use Of Cash was compiled and edited by our team from many sources on the internet. Hope this article on the topic Cash Flow Statement Source Of Cash Vs Use Of Cash is useful to you.

Nobody Likes Paying Interest

We totally understand that; nobody likes paying interest, not even us. This is an emotional hot button for any businessperson when financing equipment or raising working capital. They feel it’s like money thrown in the air… or isn’t it? Interest is the price you pay when you use someone else’s money to finance something. So why not pay cash and eliminate the interest? When business people say this to me, I respond with “if you have unlimited cash or if you have enough assets that paying cash won’t compromise your business cash flow, then go ahead”. I never argue that because it’s emotional. However, the caveat should be clear; paying cash for something that cripples your ability to have capital for emergencies, market changes, market opportunities or expansion is not smart. If your market changes and sales slow down, you can approach your bank and borrow capital; it won’t be easy because traditional lenders are risk averse and lending to failing companies is “risky”.

Funding assets together with interest payments allows you to preserve capital and the longevity of your business. Of course, the financial payment must be reasonable; it must fit your monthly budget and the asset must contribute to your minimum profit in one way or another. This should make you money or save you money. The third contribution is more difficult to measure, it can be image and reputation; if you’re a custom fit-out kitchen retailer, investing in a modern showroom where your customers can view your products can be invaluable and give you a high return on investment, but again, it’s a bit harder to put an exact number on. In any case, the financial investment should still be manageable within your budget.

While no one likes paying interest, it should only be seen as part of the ROI calculation to ensure you get the most out of your new accessory. How to get to the lowest level? Keep your personal FICO as high as possible and get it serviced if you run into trouble, review your D&B business profile and make sure it is accurate if there are any tax liens, then create a payment plan and document it and establish shows that you are take the right steps to solve them and finally have your financial statements prepared by a service provider, bookkeeper or accountant, which will show that you are organized and take your business seriously. In the long run, if managed properly, the financial interest you pay will actually pay you back.

Video about Cash Flow Statement Source Of Cash Vs Use Of Cash

You can see more content about Cash Flow Statement Source Of Cash Vs Use Of Cash on our youtube channel: Click Here

Question about Cash Flow Statement Source Of Cash Vs Use Of Cash

If you have any questions about Cash Flow Statement Source Of Cash Vs Use Of Cash, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Cash Flow Statement Source Of Cash Vs Use Of Cash was compiled by me and my team from many sources. If you find the article Cash Flow Statement Source Of Cash Vs Use Of Cash helpful to you, please support the team Like or Share!

Rate Articles Cash Flow Statement Source Of Cash Vs Use Of Cash

Rate: 4-5 stars
Ratings: 2596
Views: 35376972

Search keywords Cash Flow Statement Source Of Cash Vs Use Of Cash

Cash Flow Statement Source Of Cash Vs Use Of Cash
way Cash Flow Statement Source Of Cash Vs Use Of Cash
tutorial Cash Flow Statement Source Of Cash Vs Use Of Cash
Cash Flow Statement Source Of Cash Vs Use Of Cash free
#Likes #Paying #Interest

Source: https://ezinearticles.com/?Nobody-Likes-Paying-Interest&id=10164361