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By Stefania Aulicino

There are different kinds of doctors and you need to know which one will heal your specific ailment.
The wrong treatment, at best will not improve your situation, at worst will aggravate it- perhaps kill you.
There are different kinds of cash and you need to know which one is right for your use.
The wrong money at best will divert you from your goals, at worst will obliterate your goals- perhaps kill your dream.

Selecting the right treatment starts with your ailment.
If you don’t know your issues, you can’t match the problem with the solution.
Is it a respiratory problem, a muscle ailment, a bone issue?

Selecting the right money starts with where your company is going.
Everyone knows business strategy and finance strategy are related.
Just as the medical ailment dictates the right therapy, your business strategy dictates your financial solution- your finance strategy.

No, not all issues are financial. But all issues relate to your business model.
Not all issues are medical. But all issues are related to a healthy body.
Clarity of your business issue is absolutely critical.

1. Start with the future.
If you don’t know where you are going, you can’t get help to get there.
2. What business are you really in?
Are you focused on what you do best so you are attracting the best money for that, or are you diluting your business focus which confuses potential sources of funding?
3. How fast are you growing?
Are you satisfied with growing at the rate of the GNP, or inflation? Or are your goals double digit growth?

Too many business owners boast they only have a bank line of credit and don’t explore other funding options.

Wayne did $5mm last year, funded with a bank line of credit.
This year he was awarded $25 million in contracts and his bank already advised him they will not increase his line. Wayne’s situation is extreme, but it makes the point painfully clear.

It’s tempting to think you can use bank cash for growth.
That’s like selecting the wrong treatment for your ailment.
The bank has a responsibly to demand their money back.
Remember the source of that cash: it’s a “demand deposit”.
You are only “borrowing” the cash. Right?

Bank money is only appropriate for working capital based on your current level of business.
Maintenance capital is predicable based on existing customers and scheduled receivable and vendor terms. It’s also collateralize-able. That’s a valid use of demand deposit sourced cash.

In contrast, growth is unpredictable. It’s always faster, or slower… never as planned. That is the nature of the future.

Maintenance capital is different from growth capital.
Growth capital offers flexibility.

Business owners tell me all the time they only want to use “safe” bank debt.
Honestly, more companies grow themselves into problems with “safe” bank debt.
The bank has terms to its debt. When you are “out of covenant”, the bank has life and death decisions over your company. The bank has no choice; they need to return the money to demand depositors.

Just as not all doctors are the same, there are more types of cash than bank debt and equity.
It’s worth the education to learn your lesson before you need it.

When selecting the right money for you, start with the aliment before you get comfortable with the solution.
Fuel your BEST growth strategy with the RIGHT cash.
The definition of RIGHT cash is cash that ensures you retain ownership control, and control of your destiny.

To stay healthy, you need a balanced diet.
For your company to stay healthy, you need a balance of diverse cash sources.

Stefania Aulicino, president of CapitalLinkUSA ensures business owns get cash to keep control of a bigger, more profitable company, faster, safer than they ever thought possible- in any economy. Become a magnet for non equity and equity sources to fuel your growth. Explore our tools, solutions and consulting options tailored for different growth stages and different budgets: