MBA2157 How Much Cash Should You Always Have in the Bank? + Free Ride Friday
The $100 MBA Show
00:00
The Advantage of Having Cash in the Bank for Your Business
You don't have to give 50 percent of your profits to the fund anymore it's like forced savings. You can automate this in your bank where you can have a separate savings account for your business account and have it deduct a certain amount of money every single month. There's an advantage to having this kind of cash in the bank especially if you're bootstrapped or ever want to take a business loan out. Having that asset helps you tremendously it gives you leverage allows them to say hey if they default we have this cash they maintain it looks like this person can pay the loan now some advice when it comes to this fund you can't see it as cash on hand but only do it if
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