Credit used badly is your enemy. Many people get in over their heads because they don’t know any better. Credit can get you into a whole lot of trouble because no one teaches us how to use it properly. That’s where I come in.
I often work with people who use credit because they’re not making as much money as they were. They think that they can make up for it by borrowing. That is a bad idea.
When To Borrow — Or Not
- The time to borrow is when you have so much business that you need some extra cash. If you are borrowing money to make up for tough times,stop. Instead, cut back on profits and cut back on expenditure so that you can stay cash flow positive.
- Be careful if you have to borrow to make payroll. You really need to pay that back as soon as you can. Don’t borrow this month if you can’t pay it back next month.
- The idea behind borrowing money is to help you provide your customers with the products they’ve ordered. You should always immediately pay back the cost of making those goods when they’ve been delivered. That way your debts are paid back in four to six weeks. If you’re borrowing money and it’s dragging into a second, third or even fourth year on a line of credit, you won’t be able to catch it. Before you know it, you’ll be heading towards bankruptcy.
Lots of people running businesses make mistakes with credit. It doesn’t matter to the Rettig Team what you’ve done or how you got in too deep. We’ve heard it all. What is important is to learn from mistakes so that you get what we call ‘the big C’ – you’re allowed to CONTINUE to do what you do best – run your company.
We can show you how to run your company with a line of credit and it’s fun. The bank wins, the company makes money, the customers’ orders are delivered on time and your employees get paid on time.
Click here: Contact Patrick Rettig
About The Rettig Corporation:
Turning a business around is not for the fainthearted and you don’t need to go it alone. For more than 25 years, The Rettig Corporation has guided business owners to safety, transforming companies throughout the Western United States. Our approach is direct, immediate, and essential to the successful transformation of your balance sheet. Creditors, family members, and employees gain confidence almost immediately and the hard years begin to fade into memory.
Our exceptional teaching and coaching skills, as well as our expertise in implementing systems and controls, set us apart from other turnaround specialists. We help you evolve financially.
Our business Turnaround Team is available to you. Contact Us.