Financing Your Business

Finding the money you need to keep your business running
企業籌措資金之道 - 籌措資金以維持事業的營運

As Ben and Sandy Johnson continue setting up their new company. Uncle Bob offers them some valuable advice about financing.

Uncle Bob: Hay, Ben, how's the business coming along?
Ben: Well, Uncle Bob, we followed your advice and signed up for a small business program though our local community development association. The crucial challenge now is financing. Obviously, we will fund the company with our savings, but I'm worried that we've underestimated costs and could run out of money.
Uncle Bob: That is a very important issue for small businesses to deal with. After all, under-capitalization is one of the major reasons that small businesses often fail.
Ben: I know. We're looking into small business loans, but the interest rates seem really high. How did you pay for your hardware stores when you first started?
Uncle Bob: To be honest, I didn't actually start the first store. Instead, your Aunt June and I used our savings to buy into an existing business. Later, we bought out our business partner and then expanded the business.
Ben: So you  didn't arrange outside financing?
Uncle Bob: Not at first. Like you said, lenders often charge a premium for small business loans because they are so risky. We were warned that the cost of servicing a loan would actually hurt the business.
Ben: I hadn't thought of that.
Uncle 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?
Uncle Bob: Well, by the time we look out the loan, we had an income stream and a healthy balance sheet to 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?
Uncle 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?
Uncle 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, than it's time to consider it.
Ben: So it's all a matter of timing?
Uncle Bob: That's right. And right now, it's time for lunch.
Ben: Sounds good. Where should we go?

Grammar Tips:
"We're looking into small business loans...."
"to look into " - to investigate.
The mayor promised the widow that he would personally look into the case of her missing child.
The boss is busy and has asked his secretary to look into this matter.

Vocabulary Tips:
buy out - bought out and take over whole shares. 买断，收购。
buy - purchase.
* We decided to buy out the store's whole inventory.
*I'v shares owned by the original owner were bought out by a competitor.
service (n)-服务。
service (v)-支付利息。
*David bought a convertible on impulse, and now 30% of his monthly income goes to service his car loan.
service (v)-维修。
*I had my car serviced last week.
crucial - the partial is very important.重要，（有）决定性的。
* A healthy and nutritious diet is crucial for children.
*Puberty is a crucial stage of life. Parents need to be wise and patient.
undercapitalization -资金不足。
under - below. not enough. lack of.不足，不及。
capitalization -资本额。
*The company suffered from undercapitaliziation from the beginning.
undercapitalize (adj)- lack of money for operating the business.投资不足的。
*The restaurant was severely undercapitalized, so it only stayed in business for three months.
premium - more money added to the loan you borrow, a fee that you need to pay.
"How's ....coming along?" - this idiom use on something is not finish, is still in the process, you would like to know the current status, finding out more or get more information. You may say: " how's ....coming along?"
look into - pay more attention, careful to get more information about something.
buy into - spend money to own partial interest or ownership of a business. or believe what people said it will have growing and benefit potential.

Language Tips:
advice / suggestion : 建议，提议。
advice (不可数 n) - 字尾不能加"s"
suggestion (可数n)-字尾 可加"s"
information (不可数n)-凡不可数n，字尾不加 "s"，若要说几个要用“piece, pieces ” .
advice - use " piece" when you name of how many advice, but no "s" at the end of advice.
three pieces of advice.
three suggestions.
unaccountable noun - more about on concept of something.
accountable noun - show it's quantity of something.




Taking notes of study "Studio Classroom".