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Business By The Book: Finances (Fundamental Principles Related to…
Business By The Book: Finances
Almost every decision in business has a financial impact
Debt not prohibited, but discouraged; warnings about misuse
Romans 13:8 Pay all your debts
Prov. 22:7 Borrower is servant to lender
Fundamental Principles Related to Borrowing
Avoid unnecessary borrowing James 4:13-14 We don't know what tomorrow holds.
Avoid personally guaranteeing business debt Prov. 22:26-27 Personal assets are at risk; sole security for debt is business and assets
Avoid long-term debt Prov. 22:3 Borrowed money provides false sense of security
Develop plan to become debt-free in relatively short period of time
Borrowing keeps you from creative thinking and better solution
Delay necessary decisions instead of resolving real problems
Be disciplined; run business on cash flow and growth
Develop good credit policies
Honor God
Must be consistent with Biblical principles
Be wise in approach to lending
Chase down receivables quickly
Make sure client has excellent credit
Have process in place to assess creditworthiness
Limit lending to those who are faithful in repaying
Do not extend credit to those who would be damaged by it
Make decisions as if everything belonged to God
You have a right to recover money
Goal should be reconciliation 1 Cor. 6:5-7
Collecting a debt with other Christians Matthew 18:5-17
Go in private or through your representative to work out payment plan
Go with one or two others; try to have them meet a Christian debt counselor
Go before the church; see if they would be willing to submit to Christian arbitration; option of a collection agency or courts
Select collection agency with similar values; reach a fair settlement; practice forgiveness and demonstrate love Luke 6:30
Business funds the work of God
Profitability determines extent to which you give
Purpose determines level of giving
Perceived cost to giving does not compare to the joy in understanding your tiny role in God's bigger picture
God evalutes our attitude of giving
Give cheerfully 2 Cor. 9:7
Giver benefits more than receiver Acts 20:35
Increase in intimacy - heart of Christ Matt. 6:21
Increase in heaven - investment for eternity Matt. 6:20
Increase on earth - material increase to grow in generosity Prov. 11:24-25
Increase in enrichment of company culture - developing culture of generosity encourages others to give
OT required tithe Malachi 3:8-9
Submit yourself to Lord
NT neither significantly required nor rejected
Romans 12:6-8 Gift of giving
God's attitude is motivated by love John 3:16