1. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Chapter 11 Debt & Other Forms of Financing

2. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Getting access to funds

3. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Getting access to funds Start with Internal Sources Home Equity Lines Credit Cards

4. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Cash conversion cycle Key Components The Inventory Cycle The Accounts Receivable Cycle The Accounts Payable Cycle

5. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Integrative Approach to Working Capital Management

6. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © More Payables & Less Receivables Sources of Short-term Cash Short-term Bank Loans Negotiating with Suppliers Trade Credit Seasonal Business Credit Terms Tightening up Accounts Receivable Collections

7. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Obtaining Bank Loans though Accounts Receivables Obtaining Loans against Inventory Obtaining Financing from Customer repayments Choosing the Right Mix of Short-term Financing Obtaining SBA-guaranteed Loans

8. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © 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.”