While I recognize that the practice can be abused and provide an excuse not to engage in serious financial planning, I firmly believe that every organization with employees needs a prenegotiated bank line of credit. The one creditor who should never be asked to wait is the person doing the work of the organization.
The key to getting an LoC is a clear understanding of cash flow — here’s when we’ll need the money, here’s when we’ll be able to pay it back.
Properly managed, a line of credit can help an organization develop a reserve fund.
While I recognize that the practice can be abused and provide an excuse not to engage in serious financial planning, I firmly believe that every organization with employees needs a prenegotiated bank line of credit. The one creditor who should never be asked to wait is the person doing the work of the organization.
The key to getting an LoC is a clear understanding of cash flow — here’s when we’ll need the money, here’s when we’ll be able to pay it back.
Properly managed, a line of credit can help an organization develop a reserve fund.
Truth. A line of credit is an essential tool in the box – and like any other tool can be dangerous if not handled with attention and respect.