A company simply “can't do business” without money, says Sciambi, known as The Entrepreneur's Yoda. Companies that do not generate cash flow simply don't last.

Buddy, can you spare a dime?

It's no secret business loans were nearly impossible to secure after banks crumbled in 2008. And, if a company was fortunate enough to obtain one, the terms were restrictive and the interest rates inflated.

So, in 2011, when Vicki and John Tutulo, a husband-wife duo who were looking to capitalize their new pizzeria in Kirtland, Ohio, banks were not eager to help.  

“We went to pretty much every bank in Cleveland and got turned down by everyone for the (building's) mortgage and construction loans, except by Huntington Bank,” says Vicki. Despite their success at securing a loan from Huntington, Ohio's third largest bank and among the 25 biggest in the United States, the Tutulos were not able to borrow enough to cover their building's mortgage outright. They also had to split the $180,000 note with a loan from the Small Business Administration. The couple also borrowed $30,000 to renovate their Biga Wood Fired Pizzeria and another $10,000 to purchase new equipment.

However, what the Tutulos thought would be a $30,000 remodeling job ending up costing far more. New electric and plumbing were needed in the building as other unforeseen repairs became apparent.

Although their credit was good, it became apparent the Tutulos could not secure additional funding from a bank. So, they pursued alternative ways to finance their renovations and business. First, they maxed out personal credit cards. They also choose to employ local construction contractors, who, in turn, extended the Tutulos a sort of 'personal credit.' For example, when the construction foreman gave her a monthly statement for work provided, he allowed the couple flexibility in paying the debt. Says Vicki, “they financed us.”

In addition, both husband and wife were employed full-time until only recently, when Vicki retired from teaching. Having the reassurance that outside paychecks were still coming in as they toiled to get their business up and running was key to the pizzeria's success, she explains.  “It's difficult to get loans, especially for a restaurant because so many fail. Try to keep your day job to support yourself and your family,” she advises other would-be entrepreneurs.

In January, when the pizzeria celebrates its third anniversary, it will already have doubled in size, including a custom-built outdoor patio. And, today the Tutulos only owe on their original mortgage loan with Huntington Bank, having paid their contractors and their credit cards in full.

According to Sciambi, when entrepreneurs behave like the Tutulos did, they are doing an excellent job managing their credit. “Using and repaying credit lines is a great way to maintain good credit,” he says.

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Tami Kamin Meyer is an Ohio attorney and freelance writer. Contact her at This email address is being protected from spambots. You need JavaScript enabled to view it. or as @giriwithapen.