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Introduction and question about credit loan

ivmarkov1992@gma

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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.
 
Last edited:

ivmarkov1992@gma

Contributor
Read Fastlane!
User Power
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Dec 6, 2020
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23
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 :)
 

ivmarkov1992@gma

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Dec 6, 2020
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What moments did you love from this book? I want to read it but I need a trustworthy review.
I loved every moment! It would be best if you read the book. You don't need anyone opinion but yours :) Let me know how did it go.
 
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