Arnon Dror is one of a handful of successful businessmen who stand out in the financial world. This Hebrew University MBA graduate has more than 20 years of valuable experience under his belt. He even has the honor of discharging the office of Vice-President, a number of companies. These include Xerox, Creo Inc., Scitex, Kodak Creo Americas, and Presstek. Many of the officials of these organizations are grateful for his services. They credit him for successfully implementing certain corporate reconstruction schemes. These executives consider being an expert in many diverse fields. These include corporate mergers, international taxation, cash flow management, ERP integration, internal controls, and IT systems.
Arnon Dror Video –Is it worthwhile for entrepreneurs to opt for a suitable debt financing scheme?
This financial specialist says entrepreneurs generally have a very tough time implementing their expansion plans. These businessmen use the revenue they generate from their sales into maintaining their establishment’s cash flow. This leaves them with hardly any money to execute such business growth schemes. This is the reason why look to external sources for help. The cash they obtain can go a long way in upsizing their establishments. However, they do face a very serious dilemma. They can either issue shares to the public or take a loan from reliable institutional lenders. This expert suggests these businessmen should consider opting for debt financing. He points out the following 3 important reasons for taking this course of action:
- Retaining ownership and control
This is a very important fact which entrepreneurs can’t afford to ignore at any costs. These businessmen may get the money they need by issuing equity shares to the public. However, they need to give their investors a share of future profits. On top of this, they need to give them a say in the decision-making process. This undermines these proprietors’ ownership and control of their businesses. With time, they’ll realize it is a costly step to take. The proprietors just need to see the Arnon Dror Video on the internet. They’ll know more about this fact. Fortunately, this is not the case when they opt for debt financing.
- Tax deduction on interest payments
This aspect may come as a surprise for many entrepreneurs. The interest these businessmen pay on their commercial loans is eligible for tax deduction. This ultimately reduces its overall liability to the government. In the process, these proprietors can enhance their establishment’s finances. This is obviously what they want at the end of the day. It is a far cry from equity financing.
- Encourage frugal behavior
Entrepreneurs who take loans from lenders end up being conscious of how they spend the money. They generally invest this sum in schemes which generate adequate revenues. This makes it easier for them to pay off this financial burden at the earliest. After all, they probably how detrimental it is for their businesses to accumulate unmanageable debts.
Choosing a suitable debt financing scheme can work wonders for entrepreneurs in the long-run. Such loans can provide them with the money they need to implement their growth plans. The above 3 important reasons to take such a step proves this fact beyond any doubt. They just need to ask any expert fall within the Arnon Dror age group. This specialist will tell them the same thing.