Ask for money when you don’t need it.
Episode Stats
Summary
In this episode, I talk about how important it is to have access to capital, especially when it comes to your expansion plans. If you need a line of credit to get your business off the ground, this episode is for you.
Transcript
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you talk to Elon, he would tell you the money that came into PayPal, if it would have been one day
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later, PayPal would have never existed. My rule is ask for money when you don't need it. Every time
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I've exited a company and I've got a windfall of cash, I call my private banker and every other
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bank. And I say, hey, I want a line of credit. Why do you need a line of credit? Because I've
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got these massive expansion plans and I don't know when or how, but I don't want cashflow to
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be an issue. I want a line of credit. How much would you like? And I go $5 million. And I want
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to negotiate really great interest i have a line of credit right now it's like half a percent i
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literally have bank accounts with all my banks and massive lines of credit all over the place
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that way if for whatever reason somehow i ever got myself into a pickle i have access to capital
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because a long time ago when i was 24 years old and i was starting my business and i had a cash
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flow issue and i went to the bank to get some money guess what they said to me no and i said