1. Chapter 11 Debt & Other Forms of Financing
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

2. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
THE MAIN PROBLEM
Entrepreneur at small, growing (SME=small & medium entrepreneur) do not have easy access to variety of inexpensive funding sources
Financial manager of SME are concern about cash flow obligation to supplier, employees, maintaining solid financial
The difficulty of attracting adequate funds
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

3. Getting access to funds
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

4. Getting access to funds
Start with Internal Sources
Home Equity Lines
Credit Cards
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

5. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Cash conversion cycle
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

6. Integrative Approach to Working Capital Management
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

7. More Payables & Less Receivables
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

8. Choosing the Right Mix of Short-term Financing
Obtaining Bank Loans though Accounts Receivables
Obtaining Financing from Customer repayments
Obtaining SBA-guaranteed Loans
Obtaining Loans against Inventory
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

9. Planning Cash Flow and Planning Profits
Profit is an accounting concept designed to measure the overall performance of the company.
Many financial transactions that do not enter into the calculation of profit do enter into cash flow.
Some transactions that enter into the determination of profit do not directly enter into cash flows.
Free cash flow is equal to the firm’s cash flow from operations minus investments in capital expenditures that are required to maintain the company’s competitiveness.
Another term that is becoming more common is “pretax undedicated cash flow.”
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©