Bull Cullo is the founder of Targetfocus LLC, which performs marketing surveys for large national companies. As the company grew past its first year, Mr. Cullo needed access to greater cash flow to invest in the company’s infrastructure and was considering opening a line of credit, which would have increased the company’s debt. While we think it’s perfectly healthy to pen a line of business credit, in certain situations, especially business startups, the best option might be to create cash flow in other ways to avoid incurring debt that might weigh down the business.
After analyzing Mr. Cullo’s financial situation, we found a solution that would keep his company from incurring debt. We advised that he could liquidate nearly $30K in stock he owned and still fall under the level where he would have to pay capital gains taxes, thus infusing his business with cash without falling into a debt situation and avoiding extra taxes. The advice was timely also, considering Mr. Cullo also avoided the steep drop in stock values.
“Assuming I could have gotten a line of credit, it was a viable option in the face of not very attractive alternatives, and it worked out great. Honestly, having experienced starting up a new business, the one place if I were asked if I would want to spend time and money is not on attorneys or marketing, it’s finding the right accountant. Brian obviously knows his business, but the thing I find impressive is how readily available he is. He’s always there to answer my question or to offer great advice”.
Bill Cullo, Targetfocus LLC