In this episode, we talk about an option for when your startup makes it through the next month and you need funding fast.
You are in a bind. You're out of money, you're not exactly sure if your startup is going to make it through this next month and you need some financing really quickly. How do you do this? Okay, so in this episode, I am going to share one of your options and I'm going to explain this option a little more carefully.
So this option isn't something that you'll be able to use every single time because this option will decrease your reputation. This option isn't the most ethical way to go about doing your business. When I say the most ethical way, I'm not saying that it's unethical, it's just not the best option, but sometimes you know what you have to do these things in order for you to survive and that's just being real.
So in terms of being real, what you're going to have to do is whatever services that you're actually subscribing to at this moment, you probably have a lot of cost for your businesses. So you're probably spending a lot of money for maybe your Shopify website or your funnel membership, all these other things. And I actually have a SaaS tool. Um so I'm like saying this at my detriment as well, but I understand that these things happen, so hopefully there's other founders out there that will understand these things happen.
And let me explain a little bit more what you're going to do is for all these services, you are going to block your credit card so they can't charge you. And when they can't charge you, they're probably going to extend some sort of credit because they're not going to shut off your services right away, you will probably have a month for you to be able to come up with that money. But what this does, it helps you get some capital right away, and when I say get some capital, you're saving capital because you're not having to spend it, you're in effect getting credit from your vendors, so they're giving you this one month's credit that you can use to try to figure out how you're going to survive.
And the reason why I say this is not unethical, so it is going to decrease your reputation. But the reason why in the grand scheme of things, it's not unethical is because if you as a business needs to survive and your vendors, they want to stay in business too, well, it's in their best interest to make sure that you can actually survive. And if this means that they might have to extend some credit to you, then this is in your best interest, which is in turn in their best interest.
So this is a game that we're all playing together. It's not like who can take from each other. It's how can we all work together to raise the floor for everyone involved? And if you need some really quick way to get some financing, then it's really easy. Just put a hold, put a block on your credit card right away So no one can charge your card and hopefully your bank allows you to do this. And if your bank doesn't allow you to do this, um, you can check out startup banks like Mercury, which makes it really easy for you to freeze your cards. I'm not getting paid by Mercury to say this, This is just the bank that I use.
So if you need this type of financing really quickly, you're in a bind. It's not going to be the best for your reputation, but you have to do what you have to do. So I just wanted to share this technique where you can easily get Vendor financing at least for about 30 days, for you to be able to figure out how your business can survive. I hope this helps. This is Robin Copernicus boom bam. I'm out.