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n. Illinois | Your thinking properly in terms of having adequate working capital.
Your young and your growing both are large negatives in building up working capital.
Be honest with yourself as to your current financial situation at the end of this year. Is your working capital positive?
if it is how does it compared to your gross income over the last 3 years
Your working capital needs to be in excess of 25% of your gross income.
Using machinery as the asset to restructure debt isn't the best option as the resulting debt will be set up on a relatively quick payback 3-5 years which will increase your payment level.
Someone mentioned FSA guaranteed loan with a 7 year payback. This has merits but it also has a cost associated with it.
There is no one answer the fits everyone but at least your thinking about it and that will put you ahead of the game. | |
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Creation of working capital
