When talking about your company you should always use loans because these lines of credit can help your your business survive.
Starting your company was pretty easy, but when comes about managing the business you need to know how to save the day when needed.
Let's say that you start having cashflow issues simply because your clients are paying you on the 30th of the month, but you have to pay your contractors earlier, or you have to pay your employees earlier but you don't have money because your clients haven't paid yet.
So what you can do to keep your business alive?
You have to use a loan to pay the salaries or the contractors, and this way your business can survive for another month.
For only a couple of days of delay, your business could be affected if you don't consider starting a credit line for the company.
If you live in Canada, getting funds can be helpful for you to better manage your finances as an employee, or to keep your business alive in days when you have to pay salaries or the contractors but you don't have money yet because your clients need some more time to pay you.
Many people say that getting a loan is the worse thing to do for your business, but this is not true because once you have contractors that need to be paid on time, the loan will help you do it.
We also know the fact that your employees are not happy if they don't get paid when they're supposed to be paid, and they may even leave the company if you extend the payment day even by one or two days.
Let's say that your employees will decide to remain in the company despite the fact that you donlt pay them on time, however, an emplyee that is not pleased with its current job, will be fired later for underperformance, and your company will be affected again.
If the emplyees are leaving your company because you pay them late, the production will be affected, and your clients will become frustrated and they may stop buying from you anymore. Without customers, your company can go bankrupt very quickly.
Most businesses use today credit lines because this is the only way how you can survive in the today's society heavility affected by different pandemics, that could keep customers away from your company for days or even months.
Getting the loan will move you in a good position toward the company and your employees because you will suddenly have funds to pay their salaries, so they no longer feel sad, frustrated and ready to quit.
This is the main reason why you should get a loan as a business owner every time you need it.
A loan can keep the business afloat by maintaing the employees in the company.
The same loan can help a new business survive in difficult times like those created by the Codi-19 pandemic, which killed millions of people and closed thousands of new or established businesses all over the planet.
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Author : Dany Ovy |
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