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by rexreed
654 days ago
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Could you have structured the deal in a more cash favorable way seeing as you are paying for it from cash flow? That way it would have been less of an immediate impact on finances. For purchases like this, a revolving line of credit is helpful, even tho there's cost to that, because it lessens the impact on cash flow. |
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My margins are solid and there aren't a lot of competing opportunities to deploy capital besides pulling forward cloud costs or hiring folks (which is a very different value prop altogether), so reasoning about the lump sum was pretty easy, but you're definitely right in that objectively speaking I should have just gotten a line of credit and amortized it that way.