In fact, I was really confused at first why the lockdown of credit means to many businesses were going under. I didn't realize how many companies rely on credit to pay bills or even payroll each month! The only "loan" I used in starting my business was to get the business license and fictitious name statement - and I did those when I had a first sit already lined up, so that first job paid back my personal account for the start-up costs. Every other thing I've done for the business (advertising, getting a logo, shirts to wear, business cards, etc.) has waited until there was money in the account to pay for them.
It seems very strange to me to be paying interest on loans in order to run a business (although I can understand it for inventory and such, I still wouldn't think you'd carry a ton of credit all the time). You know? Paying interest means less profits, to my mind!
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In fact, I was really confused at first why the lockdown of credit means to many businesses were going under. I didn't realize how many companies rely on credit to pay bills or even payroll each month! The only "loan" I used in starting my business was to get the business license and fictitious name statement - and I did those when I had a first sit already lined up, so that first job paid back my personal account for the start-up costs. Every other thing I've done for the business (advertising, getting a logo, shirts to wear, business cards, etc.) has waited until there was money in the account to pay for them.
It seems very strange to me to be paying interest on loans in order to run a business (although I can understand it for inventory and such, I still wouldn't think you'd carry a ton of credit all the time). You know? Paying interest means less profits, to my mind!