Use capital investment to strengthen the companyâ€™s position in the market. Technology, scalability in production process, marketing and human resources.
One part of the strategy is not waiting for the redline, the point in which you really need money. Every year a company needs to evaluate their financial strength before they run into trouble.
There are factors to consider:
Can you withstand a market catastrophe?
What would happen if you lost your biggest client?
What if the competition was unbearably strong the first part of the year ?
Banks Lender guidelines Interest rates Term of service
Investors Acceptance of risk People on the same wave length Involvement in the process
3rd Party Liquidity Could be high interest rates Penalty for early termination