lets look at some petential sources of funding for your company,
the bank I use for my commercial account wants me to submit a loan application.
a commercial bank is one funding source,two others we might consider are investment banks and joint ventures.
lets look at the commercial bank first,I mean I already have a relationship with them.
that's a big advantage,
they know my track records.
you can use your past relationship to build rapport and establish
an ongoing relationship.
I like working with them,they have gotten me through a few rough spot.
once you've established a line of credit,
which we have,
once you have established it,you're elegible for a short term loan,
that's a big plus,right there.
you bet,you never know when you might wind up short on cash.
I have been down that road.
is there a disadvantage of borrowing from a commerical bank
generially it costs more,commerical banks have a higher interst rate.
so the disadvantag is a higher interest rate.
there is a high cost of funding with a commercial bank,
I cann' handle a high carring cost.
talk to your bank,negociate a low rate.
they might work out something,
sure,they want you as a customer.