Yeah. And 10 months in, we just got, you know, one of the major brands to give us one with a embarrassingly and stupid low credit limit. You know, it's like really, you know. Yeah, so that's a very real problem.
Acquiring Minds
Year 1 in a $300k SDE Services Business
Excerpts · 456 segments · ~1:30:01 long
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And so just reminder to everybody, when you do an asset deal, it means you are buying the assets of the business that you're buying into a net new entity, a brand new business entity. And so when you go out into the market to try to get any number of types of credit, from credit card to lines of credit, that whoever you're talking to is going to look at the age of the entity and they're going to…
They're not going to like that. They generally like to see two years of, of history of life to the entity, even though you'll say no, but this is an existing operating business and it's just the new entity is just a formality, not going to cut it. And so you end up being in a position where you can't get credit for the first two years until the entity ages.
And vendors, same thing.
Vendor terms?
Yeah, we were lucky. My business partner is a very good negotiator and most of our vendors gave us the same terms and one of our biggest vendors actually gave us better terms than the previous company had.
Oh, wow. Okay.
So from a vendor standpoint, we didn't have too, too many problems, but yeah, credit, credit cards, line of credit all.
And Scott, when you say you had your line of credit and you also had working capital, are you talking about, or you're talking about the line of credit as the working capital?
No, we got working capital included in the deal. We did not get a line of credit.
Oh, you didn't end up getting line of credit from the bank? Sorry, I thought you were saying.
Yeah, the bank did not do it. They don't offer it. And so we had to give ourselves.
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