guarantees from the owners, offi cers or directors of
a business in order to lend, a situation that can get
messy.
And what about Grandad? He wouldn’t have paid
someone interest just to use their money because he
couldn’t be patient!
* * * * *
I have just listed three potentially valid reasons
to avoid borrowing from banks or other lenders
on a regular basis – the price of money, personal
guarantees and the need for patience.
But what about when you need to expand your
operations to meet a surge in demand? What
happens when you need extra capital to make it
through a cyclical slump?
Th e fi rearms industry is nothing if not cyclical, so
those circumstances occur more often than anyone
would admit.
Building business credit can and will take time,
as well as diligence. It is a process of building trust,
and that is done by dutifully managing the risk
that others have taken to extend credit to you in its
various forms.
Remember, too, that well-established credit
can serve as a wall – a wall between your business
and failure in poor circumstances, and a wall that
can serve as a stepping stone to bigger things in
advantageous ones.
In light of that, having established credit to rely
on when necessary is an unquestionably good thing,
even if you never use it.
Th e good news is that you can work toward
establishing that credit by taking simple steps in
your day-to-day business that will not only build
your business credit, but also provide fl exibility
in managing your cash fl ow and increase your
purchasing power, all without a dime of interest
charges. (Grandad would be proud!)
I’ll cover how to do just that in part two of this
article in next month’s issue, “Building a Wall of
Business Credit – Th ree Paths to Improvement.”
About the Author
Josh Fiorini is the former CEO of PTR Industries Inc.,
and spent the fi rst decade of his career in fi nance holding
positions as an equity analyst and portfolio manager
before starting his own hedge fund that led him to the
fi rearms industry. Th is experience, along with a deep
background in manufacturing, banking and private
equity has made him a sought-after contributor on
numerous boards and discussion groups on political and
economic issues.
Currently, Fiorini invests his time and resources into
non-profi t initiatives and acts as a contributor and
management consultant to various fi rms in the fi rearms
industry. His activities have been reported in such
publications as Th e Wall Street Journal, Th e New York
Times and USA Today.
INDUSTRY
INSIGHT
National Shooting Sports Foundation
+1 203 426 1320
info@nssf.org
www.nssf.org
www.guntradeworld.com 33
GTW
/www.nssf.org
/www.guntradeworld.com
link
/www.nssf.org
/www.guntradeworld.com
link
/www.nssf.org
/www.guntradeworld.com
link