May 30 (edited) in Secret
Secret #2
Top & bottom line revenue + cash flow
Gross revenue is great but net profitability gets taken into high consideration for conventional funding.
If you’re looking for a low interest long term SBA or bank loan then you’re going to want to show increases in net profitability on a year over year basis.
Keeping the balances in your business bank account high is important as well.
If you have average daily balance that is low and a low number of deposits per months then loan underwriters will put your application in a higher risk tier.
So keep those balances high and deposit as much money you can into your business bank account as possible! Increase your net profitability on a year over year basis.
Will you have to pay more taxes? Yes.
Will your company be easier to sell? Yes.
Will your company have access to cheaper funding options? Yes.
The positives far outweigh the negatives when it comes to showing net profitability.
Stop operating at a loss on your tax returns every year simply to avoid paying Uncle Sam.
You are stepping over dollars to pick up pennies!
#TheyDontTeachYouThisInSchool
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Secret #2
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