Quote:
Originally Posted by 2ss-booya
|
Getting small business loans or grants doesn't mean they were not under capitalized nor does it mean they didn't repay them. A small business loan or grant for a couple hundred grand isn't a drop in the bucket if your business is of any size at all. Hell 200K in many cases might not even get you setup in a building and allow you to get started...
you can have all the orders in the world and even be back ordered and easily be in this situation. Not enough cash to expand to be able to meet orders, get some suppliers that you are using for steel, etc that start paying late in this economy, or not enough cash to be able to buy raw materials in sufficient bulk to keep the prices down where your margins need to be. Have a bank cut your LOC due to the economy...it's all easily possible no matter how many orders you have so don't google their name, find this info, and assume your being lied to believe me.
Eric