Exchanging Assets

Definition

When cash is truly limited, you can attempt to exchange equity in the company for equipment. Ask your suppliers if they are willing waive cash payments in return for a stake in the business. Even though it may seem daunting to give away equity in return for something so small, you should understand that when more people are dedicated to the success of a business, the better it is for the business all around. Your suppliers would be more motivated to helping you out if they held responsibility in the achievements or failure of the company.