Lending

Pros of customer financing:  Increased sales Capture customers on the spot Better prices for the customer  Cons of customer financing  You might have to pay a fee for the service.  You might have to meet minimums to use the service.  It could raise your customer acquisition cost.  I hope this helps!  Amber (more)

A cardinal rule in the cash flow management of a business is, "You cannot borrow your way to solvency." When you borrow money because you cannot pay your bills, all you are doing is creating another bill you cannot pay. Many new businesses fail because they don't have the startup capital they need to help the business survive until it becomes self-sustainable. They exacerbate the problem by going into debt. You have to be willing to invest time and personal capital... (more)