Financing Your Business (2)

Bob: Instead of borrowing right away, we waited until the business was a little better established. Then we borrowed money and used it to expand the business.

Ben: How did waiting help?

Bob: Well, by the time we took out the loan, we had an income stream and a healthy balance sheet, so we were less of a risk for lenders. That meant we were able to borrow on better terms.

Ben: So you think we should wait before getting a loan?

Bob: Practically speaking, most small businesses inevitably go through several rounds of financing as they grow. Like your company, most small businesses are started with seed money from their owner's savings or family members. The businesses aren't usually started with money from a loan.

Ben: How will I know when the time is right to borrow?

Bob: Once companies are more established, the owners have a lot more choices. They might, for example, get a line of credit, take on a partner or get a loan. If borrowing money will make you money, then it's time to consider it.

Ben: So it's all a matter of timing?

Bob: That's right. And right now, it's time for lunch.

Ben: Sounds good. Where should we go?

Info Cloud
in the red/ in the black/ break even
in the red 有虧損(因會計做帳負的會用紅筆)
in the black 有盈餘 (因會計做帳正的會用黑筆)
break even 損益平衡 (沒有虧損也沒有盈餘)
the level of business activity at which a company is making neither a profit nor a loss
You need to earn $3000 to break even.
你要有3000的收入才會損益平衡

Language Lab
established adj.already in use or existing for a long period of time 穩固的, 被建立的
We visited several established fashion houses during our trip to Milan.
我們去米蘭的旅行途中訪問了幾間知名的時尚品牌
establish v.
1 to start a company, organization, system, etc that is intended to exist or continue for a long time
2 to begin a relationship with someone or a situation that will continue
3 to find out facts that will prove that something is true
4 to make people accept that you can do something, or that you have a particular quality

balance sheet n.
a statement of how much money a business has earned and how much money it has paid for goods and services


line of credit n. 信用額度
the maximum credit that a customer is allowed.
credit 信用貸款
Bob requested a line of credit from the bank.
Bob 請銀行批准他的信用額度
The company's line of credit was cancelled because of a delay of the loan payment.
這間公司的信用額度因為沒有付貸款而被取消了

inevitably adv.必然的 無可必免的
used for saying that something is certain to happen and cannot be avoided
Inevitably, over-expansion soon caused a financial burden for the company.
過度擴充很快造成公司上財物上的負擔
inevitable adj.
The scandal has had some inevitable effects on the image of this public figure.
這件醜聞對於這個公眾人物的形象有了無可必免的影響

seed money n.
the money you have available to start a new business 種子基金 創業基金
seed 種子
Mike borrowed his seed money for his bakery from his in-laws.
Mike 的麵包店創業基金是像親家借的
That charity organization offers seed money for low-income families to start their own businesses.
這家慈善基構提供低收入家庭創業基金

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