[Dale Wiley]

Two different things going on here.

If you want your business to be in a great position at the end of the year, DON'T BORROW MONEY. Cash is the only way to pay for things. Most businesses fail because of to much borrowing. If you have everything you need at this point, start an equipment fund, supply fund etc... If you don't have the money to buy a piece of equipment, rent it until you can save up to purchase used or new.

This great advice. After 27 years in this business and borrowing way too much money, I am basically on a cash basis.

I have an Operating Cash Reserve account that gets 3% of every check that comes in. We pay cash for all supplies and we DEMAND a discount for that. And we usually get it. Because we also buy volume.

My banker is trying to set me up a line of credit. I will set it up, but I will not use it. I intend to pay cash for EVERYTHING from here on out. I may have to lease a couple of big ticket items over the next 5 years, but that is equipment and I can deal with that.

Growth from profits is slow, steady and sure. Any use of leverage carries risks, and after you find your butt missing a good portion , you will learn.

Building credit is good and needs to be done. But the use of credit is far too prevalent in the economy today. Cash is king, and when you owe, you are a servant to the debtor.

I suggest a book called Financial Peace and The Money Make Over by Dave Ramsey. VERY educational.

The business is debt free save for 1 equipment lease and I intend for it to stay that way. Personally it ain't as good, but I should be debt free, save my mortgage in less than a year, and I intend to pay that off in 6 years.