MONEY AND THE FINANCIAL SYSTEM This chapter provides you with the opportunity to think about money and the financial system and just how many new businesses fail every year. In some industries the failure rate is as high as 80 percent. One reason for such a high failure rate is the inability to manage the finances of the organization. From the start of the business, financial planning plays a key role. Try getting a loan without an accompanying budget/ forecast of earnings and cash flow. While obtaining a loan from a family member may be the easiest way to fund your business, it may cause more problems for you later on if you are unable to pay the money back as scheduled. Before heading to a lend- ing officer at a bank, contact your local SBA center to see what assistance they might provide.