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Old 03-13-2013, 01:30 PM
precisionlawnandlandscape precisionlawnandlandscape is offline
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Join Date: Jun 2009
Location: Stuart V.A.
Posts: 19
Originally Posted by newguy123 View Post

It happens no doubt, a company spent 250 mil cash on a factory we were bidding landscaping on last year.
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You are correct, it does happen occasionally. One thing that people don't realize is a lot of the times (and not saying it was in the case you described)what happens is companies either raise a lot of cash through investors, or they themselves are an investment company (using other peoples money). They are still using other peoples money, in exchange for a cut of the profits. It still essentially works the same, either borrow from bank and pay interest or borrow from investors and pay with % of company profits. In these cases it still costs you in the long run to get the money. This method has been becoming real popular in the Nascar racing world lately. When sponsorship dollars started drying up, teams went out and started bringing in investors instead of using there cash or savings up. I have seen 1st hand some downfalls to this method in the long run. When you borrow from the bank, for the most part they don't tell you how to run your business, as long as you make your payments on time. When you have investors, and they get their board of directors involved in your day to day operations, to keep their shareholders happy, your world becomes a nightmare. You might as well not be working for yourself anymore at that point.
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