Financing is an important part of starting and growing a business. However, there are a lot of misconceptions and confusion. Many people only have experience financing a house, car, or a new couch. Yet there is a whole world of financing business equipment and software.

This episode discusses financing for business and answers the most frequently asked questions.

Why do businesses finance equipment?

• Utilize banks money to start
• Keep current liquid money on hand
• Tax benefits
• Time value of money

Can a new business finance?

• Yes!
• You can use personal credit

What if you don't have perfect credit - should you finance? What if the rate is high?

• Start now, or don't start
• Risk and reward
• Do what you gotta do

Why not just use a credit card?

• Installment vs revolving credit
• Save your credit card for quick purchase / pay off like supplies or blanks
• Don't use personal revolving credit lines for business

Isn't interest bad?

• If you can make more money than the interest, you win
• Tax benefits
• Bank loans cost money, that's the way it works. They are in business too.
• Better to do something than nothing to win

What's the finance process like?

• Apply
• Review credit and terms with agent
• Accept, sign, deliver

What's financing vs leasing?

What if someone has a lot of other questions?

Isn't debt for suckers?

• Most businesses have debt
• You buy a house with a loan for the long-term benefits (equity)
• Is a car loan for a new and reliable car better than paying cash for a car that will break down?

Financing: assets vs liability

• A machine for business is different from a car
• This isn't just adding to your bills but giving you opportunity.
• Tax benefits
• You own something of real value vs taking on debt for a vacation or new tv

Overall, financing isn't complicated, but it feels scary. So is starting a business or buying a house. Those who take the risk are the ones who can be rewarded.

Learn more at https://coldesi.com/financing-options/