Thread: business loan?
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Old 10-27-2002, 11:35 AM
John Allin John Allin is offline
LawnSite Bronze Member
Join Date: Sep 2000
Location: Erie, PA
Posts: 1,489
Our first 15 years, we operated without any type of business financing (other than vehicle loans).

We then borrowed some money for a fixed term, and when that was paid back - we didn't finance anything for another 5 or 6 years.

Now we have a CFO to run our finances and we DO have business financing - but the decimal point for our business is in a much different location too....

At some point, financing is a good thing - although it must be viewed as "managed debt". Larger companies (like, multi millions in revenues) require some debt to be solvent. We actually got to a point where our debt to equity ratio was SO low, that the bank and our outside accountant had some difficulty with it as it began to adversly affect cash flow.

If you're small - do as much as you can without debt - IMO.
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