The Most Powerful Way to Leverage Business Credit
CEO’s of new businesses should be aware that most Start-up businesses do not reach a level of profitablility and cashflow for while. The accurate use of business lines of credit along with a great business idea and plan can kick start the process. Business Lines of Credit are very flexible tools that allow you to make payments out of th money you have set aside from your initial cash draw while you uild your business!
In the world of Business Credit, this is called seasoning money. Seasoning money means to set aside some of the cash you withdraw from your business lines of credit and place it into another account for future use.
Here are some great reasons to season money from your business lines of credit:
- keep money that can be used to repay the monthly payments on initial credit lines while you build the business
- have money available for salaries during business start-up
- Strengthen your balance sheet with good cash reserves
- Use cash as collatoral or leverage to secure new loans
- Cash cushion available for emergencies
The most powerfule way to leverage business credit is to use the cash from business credit lines to open accounts and establish relationships with small regional lenders. These local lenders are more likely to offer you lines of credit if you season money in an account at your local bank.