Saturday, December 4, 2010

Using Credit Lines

These are great sources of capital because you only pay interest when you need to use the money. You can borrow and pay back over and over again without any additional approval. Use the money at will and only pay the minimum monthly payment or more when you have it available. They can be set up at your bank, brokerage firm or tied to a home equity loan. You don't have to be a large business to get a credit line.

All the paperwork to qualify is done in the beginning and as long as you follow the terms, you won't have to do it again except for maybe some updates. The smart way to do this is to set up a credit line before you get into a cash flow problem so the money is avalable immediately. These are usually the best sources of quick cash because you control the purse strings.
More on Raising Capital Quickly in chapter 22 of my book "When the Shit Hits the Fan" available at bookstores, Amazon, Kindle etc.

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