Cash Crunch
Don't let investors and lenders use that old "it's the economy" line as justification to put the squeeze on your business.
No question--it's scary out there. The ever-tighteningcapital market has many cash-hungry souls grabbing the first dealdangled before them, and that's a dangerous plan at a time wheninvestors and finance companies are demanding onerous terms.
Sure, you will have to make concessions and consider termsunheard of in those glory days when VCs, banks and other financingsources bid against one another for a chance to supply funding withfavorable terms and few strings attached. But even in a tightmarket, terms are negotiable, and fending off unreasonable demandsnow can help stave off disastrous consequences later. So whenjudging the benefit of potential funding, be on the lookout for thefollowing red flags.
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