BUSINESS LINE OF CREDIT
A line of credit gives you access to funds up to your credit limit, which can be borrowed and paid back multiple times while only paying interest on the money you borrow. This is a flexible and typically unsecured way to borrow money for seasonal businesses, or businesses that need help managing cash flow or handling unexpected expenses.
Pros:
-
Flexible borrowing
-
Typically no collateral required
Cons:
-
May have maintenance fee or withdrawal fee
-
Good credit and consistent revenue required
Best for:
-
Short term needs
-
Seasonal businesses to help manage cash flow
Value
Stock Price/Intrinsic Value
Future cash flow discounted back to present day factoring in the correct interest would provide data (number) for intrinsic value, providing the business is understood. Tech stocks are difficult due to the fact that the future growth for tech companies is unpredictable as opposed to a candy manufacturer (Buffett, 2019). The purpose of investing in a stock is to receive cash in the future from the stock. This is not an exact calculation due to the fact that profits or losses with be in the future and therefore, unknown at the present time. Looking for a discounted present value to show profits from the future value of the security by what the company will produce in the future. Viable information is vital to create a margin of safety for the investor.