Many companies have had to cut back on spending during the past year due to the economic crisis. However, this year they want to start spending money again, but the banks remain reluctant to readily give out cash. They have become much more careful when checking the operative cash-flow and the debt of the companies. Thus if you have a high debt and your cash-flow is negative, you have to find a VC, because the likelihood is, that banks will not give you any loans.
Tags: entrepreneurship, venture capital
