If you own a business and you need money, who is the first person you call? Your banker. Most owners think that when they need money, they must need a loan or a line of credit. And therefore, they must call their banker.
However, this may be a mistake. You really need to understand your long term cash flow needs before getting a loan. By focusing on solving the short-term need, many owners paint themselves into a corner and eliminate (or at least really limit) their chances of getting financing later on. A loan or line of credit can paint you into a corner unless you know what you are doing.
When you buy a house, the bank that gives you a mortgage also takes first position on your house. When you get a business loan, the bank wants first position on your business assets. When you get a business loan, the bank will almost always file a UCC lien (also known as a commercial lien) that encumbers your business assets. Although getting a second mortgage may be easy in todays market getting secondary business financing is almost impossible.
So chose very, very carefully.
If you need a product that grows with your business, is easy to qualify for and...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
