Do you have a line of credit?

[LeslieBarber]

As small business owners and self-employed professionals, financing and funding matters can tough to navigate — especially when you're just starting out or your business is still young.

When we first heard about how Christina Stembel from Farmgirl Flowersdiscovered a financing "trick" to make sure she's always ready in case her equipment breaks or she loses precious inventory, we immediately shared her tips with everyone we know.

Here's her story...

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"At Farmgirl Flowers, we're 100% bootstrapped. I started my business with $49,000 and my whole goal was to never run out of money. I got down to $411 at one point, so I understand the struggle very well.

My biggest suggestion for any small business owner is to get a line of credit when you *don't* need it, and sit on it. 

My business is seasonal, so if one thing goes wrong, it's the difference between surviving or not. Once, one of our coolers broke and we lost $80,000 in flowers! I had to go to my farmers and ask for longer terms. That's when I decided to go to the bank and set up a line of credit.

Now, I have ability to use that cash if I ever need it. Even though there is a yearly fee I have to pay, the peace of mind is worth it. The bank isn't going to give you a line of credit when you need it — so it's better to be proactive and set up a line of credit when you don't need it.

It's harder for businesses that are less than two years old to get a line of credit, so we lived way below our means in the early years and budgeted relentlessly. Find ways to save money in your business, even if it means not buying lunch for your team until you're profitable."

— Christina Stembel, Founder & CEO of Farmgirl Flowers

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How about you?

Have you ever considered opening a line of credit for your business?

If so, is it something you can call on in a pinch if you run into issues that require you to have cash on hand right away?

Share you own stories with us in the comments below!