Self Financing Your Business

The LORD will open the heavens, the storehouse of his bounty, to send rain on your land in season and to bless all the work of your hands. You will lend to many nations but will borrow from none. Deuteronomy 28:12

The most critical aspect of starting and growing a successful business is acquiring the necessary financing. A Biblical Entrepreneur has various options when considering how to finance a business; self financing, debt financing, or equity financing. Among these three options, God’s best is self financing. Deuteronomy 28:1-2 states that if we diligently obey the voice of the Lord our God, to observe carefully all of His commandments which He commanded us, the Lord will set us high above all nations of the earth. And these blessings shall come upon us and overtake us because we obey the voice of the Lord our God. Among these blessings is the ability to be a lender to others and not a borrower. Although borrowing as a strategy to finance a business is not a sin, it does not represent God’s best. God desires that His covenant people be in a position to not only experience debt free living and finance their businesses, but to be able to lend to others as well. Of course the Bible’s definition of lending is not limited to the transfer of money or property with an expectation to receive it back with interest; the Bible also defines lending as giving. Psalm 112:5 states, “Good will come to him who is generous and lends freely, who conducts his affairs with justice.” Proverbs 19:17 says “He who is kind to the poor lends to the LORD, and he will reward him for what he has done.” In other words, part of the blessing for obedience is not only having all of our needs met but having enough to meet the needs of others.

What does it mean then to self finance? Self financing is using personal savings or investments as capital to start or grow a business. The advantage of this approach is that we are in bondage to no man. Remember whenever we borrow from others, we enter into temporary bondage. Self financing also allows us to be completely dependent on the Lord. Other types of financing may cause us to view who gave us the capital as our source rather than understanding that they are God’s instruments and He is the source. The other advantage of self financing is we do not need to share the profits with anyone and we are free to operate the business without being bound to the input of others. The disadvantage is that we are using our own cash, which can have a negative effect on our cash flow. We should not be so determined to self finance that we put ourselves in a negative cash flow position. Rather, ask for and exercise wisdom as you consider the type of financing that the Lord would have you utilize. Remember, it does not matter where you start, what really matters is where you end. Knowing God’s best, start where you are and trust Him to bring you to where you ought to be. If self financing is God’s best, why is it that more Christians and Biblical Entrepreneurs do not self finance?

Sin – we live in a fallen world and are all victims to Adam’s sin. Sin is a conscious or unconscious violation of God’s Word which causes us to suffer the consequences of disobedience, one of them being debt to others. Deuteronomy 28:44
Bad stewardship – some of us, though we know better, have not exercised the discipline of proper stewardship. Bad stewardship is the mismanagement of the treasures that God has placed under our care.
Lack of contentment – to be unsatisfied with what we have and attempting to start or grow our business ahead of God or beyond our ability.
Presumption – proceeding to start or expand the business with arrogance, self confidence, and void of godly wisdom.
Growth – the business evolving beyond our ability to finance it with our own resources. This problem is actually a good problem and may not be avoided no matter how well you prepare.
Greed – an excessive and uncontrollable desire to acquire more material wealth and power than you need or deserve through the start or growth of the business.
Whatever your current circumstances, if you desire to experience God’s best and allow HIM to provide your financing:

repent of any known sins in your life
exercise proper stewardship over your finances
be content with what you have
humble yourself under God’s mighty hand
prepare for current and future growth by building a reserve
seek first the Kingdom of God rather than things
Do these things, be confident and watch the Lord bless your search for the right fundraising vehicle for your business.

Written by Patrice Tsague.

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