Broadcasting the Virtue of Mutual Exchange
Read Millionaire Fastlane
I've Read UNSCRIPTED
- Jan 23, 2011
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.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
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.