You probably know how difficult it is to expand your current market operations. Offering exemplary customer services your clients certainly helps and boosts your organization’s goodwill. However, it doesn’t get you very far. Most entrepreneurs notice that most of the revenues their establishments generate find its way as working capital. This leaves them with hardly any money for their expansion efforts. You may have come across such a situation in the course of running your business. Industry experts say you could consider taking a loan on terms acceptable to you. Taking a little debt can go a long way in helping you achieve your objective.
Arnon Dror Biography What entrepreneurs need to know about debt financing?
Arnon Dror is a prominent figure in the world of international business and finance. This MBA graduate from Hebrew University can more than 20 years of valuable experience in this field. Entrepreneurs just need to read Arnon Dror biography on the internet. They come to know of his impressive track record of Vice-President (Finance) at US Channel Group. He specializes in many diverse fields. These include internal control, ERP integration, cash flow management, international taxation, supply chain optimization, and strategic planning
This financial expert says need all entrepreneurs to understand the following three important facts about debt financing:
1. Ownership and control
Many entrepreneurs rely on equity to raise the funds they need for their expansion efforts. They generally feel it is a safer option to applying for loans for the same purpose. However, they seem to overlook a very important fact. They lose sole control and ownership of their establishment. Such businessmen now have to take into confidence their financers in any decision they make. Such a situation doesn’t raise in the case of debt financing.
2. Conditions and time period
Proprietors of small business concerns need to assess their priorities carefully. Most of them generally expand their market operations gradually over a number of years. In such a case they need to choose loans which suit their purpose. They should carefully study the terms and conditions of such schemes. Many of them also need to determine the sums of money they intend to borrow. Such requirements should be acceptable to them and meet the needs of such owners. After all, they don’t want to end up being liable for unmanageable loan repayments. Such debts can ruin their establishment’s finances over time.
3. Creditworthiness and business plan
Most business owners believe their creditworthiness influences the sum of money financiers are willing to lend them. Those with less than exemplary track-record of repaying their dues feel they don’t stand a chance. Most lenders generally regard them as ineligible for such funds. However, this is not the only criterion banks, and other similar institutions look into. The officials of such organizations also look into the business plans of such proprietors. They want to how these owners intend to use the funds they lend them to generate revenue.
Entrepreneurs just need to browse through Arnon Dror LinkedIn profile on the internet. They come to know that debt financing can work wonders for their organizations. However, they need to consider the above three important factors before choosing the right one. Only then can ensure the proper growth of their concerns.