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INTRO Introduction and question about credit loan

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ivmarkov1992@gma

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Read Millionaire Fastlane
Dec 6, 2020
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Hi everyone,
My name is Ivan, I'm from Croatia, and I just read Millionaires Fastlane, loved it.
This has been a life-changing year for me; I started my own business that has all the characteristic of a Fastlane :)
I loved the simplicity of MJ's writing and how easy he explains some things, really inspiring and, more important, action taking book.

And now to the question part of the introduction, regarding my other business:
Situation: You have a small hotel and since is covid, this is been a hard year for a hotel. The government agency is offering a loan of approx. 60.000,00 dollars for working capital. Interest rate is 0.25% yearly. You need to return the money in 5 years.
So my question is do you take this ( even if you don't need it) because interest rate is so low?

Happy to be here :)
 

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Kak

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Hi everyone,
My name is Ivan, I'm from Croatia, and I just read Millionaires Fastlane, loved it.
This has been a life-changing year for me; I started my own business that has all the characteristic of a Fastlane :)
I loved the simplicity of MJ's writing and how easy he explains some things, really inspiring and, more important, action taking book.

And now to the question part of the introduction, regarding my other business:
Situation: You have a small hotel and since is covid, this is been a hard year for a hotel. The government agency is offering a loan of approx. 60.000,00 dollars for working capital. Interest rate is 0.25% yearly. You need to return the money in 5 years.
So my question is do you take this ( even if you don't need it) because interest rate is so low?

Happy to be here :)
YES, considering the businesses that I am in, I would take it and just park it until I needed it at that interest rate it is basically free.

You may uncover an opportunity to deploy it on. In your case, maybe an expansion? OR an acquisition of something else?

At $60,000 over 5 years at %.25 you are only paying a total of less than $400 in interest. So it really is only a $400 decision. Couple that with global money printing and you're paying it back with less valuable and therefore less difficult to earn money than today.

The thing with working capital loans... They seem to be always there when you don't need them, but there is always some difficulty when you do. Better to plan ahead and be more cash flush.

With those terms you certainly have my blessing! I would ask for 100k! LOL!

Just don't spend it on something speculative that might leave you in a hole.
 
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ivmarkov1992@gma

New Contributor
Read Millionaire Fastlane
Dec 6, 2020
28
17
17
YES, considering the businesses that I am in, I would take it and just park it until I needed it at that interest rate it is basically free.

You may uncover an opportunity to deploy it on. In your case, maybe an expansion? OR an acquisition of something else?

At $60,000 over 5 years at %.25 you are only paying a total of less than $400 in interest. So it really is only a $400 decision. Couple that with global money printing and you're paying it back with less valuable and therefore less difficult to earn money than today.

The thing with working capital loans... They seem to be always there when you don't need them, but there is always some difficulty when you do. Better to plan ahead and be more cash flush.

With those terms you certainly have my blessing! I would ask for 100k! LOL!

Just don't spend it on something speculative that might leave you in a hole.
Thanks a lot, this is really helpful and I agree with all that you said. You never know when are you going to need it and it's basically free. thanks :)
 

Molly13

New Contributor
Apr 24, 2021
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Millionaires Fastlane
What moments did you love from this book? I want to read it but I need a trustworthy review. One of my biggest issues was actually the first loan that I ever got as a teenager fresh out of college, which simply destroyed my score. Loans come with a lot to unpack, so my opinion is that you should only get one when you absolutely have no other option or are thinking about investing the money you would get. I made the mistake of getting one fresh out of college, to get my own apartment in the heart of the city, a teenager's dream. Of course, I didn't research anything neither about the bank nor what a loan actually implies. Struggled a few years with some hidden clauses, which was not a fun experience at all and I also needed the help of legal experts along the way. When I got my second loan for the business I own, I was already experienced and knew that the best choice I could make would be to contact a company that offers loan guidance. I can link to them if anyone here is interested. All of this apart, I still want to learn more about the whole subject, because there's no such thing as too much knowledge in this domain, so I'd love a review on the book.
 
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