Valuable Money Alternative Awaits The Alert Entrepreneur
At the prestigious Wharton School of Finance, Ian MacMillan
(professor of entrepreneurship) was known for suggesting his
students amass as many credit cards as they could. �In the early
stages of a growing business,� he affirmed, �you�re sort of starving
in the midst of plenty, because even when orders are booming, an
entrepreneur may not have sufficient income to pay suppliers. So
credit cards can act as a stop-gap or a cushion.�
There�s no argument with the professor about the need for cash
infusions in the early days of a new or expanding business. Last
year there were nearly 1 million business start-ups in the United
States. An incredible 50% of them opened their doors with $10,000 or
less in capital.
However, the professor should have include in his curriculum another
proven method of financing entrepreneurial startups � the use of
trade dollars. Unknown to the professor and many others, too, are
the merits of a good trade exchange with the many ways it can assist
a fledgling operator.
new owner who�s able to provide needed products and services to the
exchange�s membership, can instantly borrow trade dollars against
future sales. He then can immediately use those trade dollars to
make necessary improvements or selected renovations, purchase a
myriad of needed merchandise, acquire valuable advertising, even
finance a gala grand opening promotion.
Maximum cash flow is retained because financing charges, the
interest on the trade loan, is payable in trade dollars. The
exchange provides another key benefit, that of greater cash flow
which may be used for paying those necessities � salaries, utilities
and phone bills, as well as suppliers.
Thanks to the trade exchange, cash at this critical time can be used
to build the new enterprise rather than paying the banker. And the
circle is completed when the new owner happily opens the door to the
exchange members, so as to earn as many trade credits as possible to
quickly pay off the trade loan.