Some people actually believe that if they collect a loan of a very huge amount, they can easy to do something that is great, then use the projects to repay back the money. After sometimes they’re going to pay back in full. I am so happy to tell you that this doesn’t work in real life. Just like that. You cannot just take a loan of, let’s say $25 million from bank uses to build an investment.
Then that investment can actually pay you off at the long run. Beetroot is that if you are not getting a subsidised loan, we’re getting a bank loan.
The interest is going to kill you out of business and you’ll be seeing a scenario where the interest rates alone is taking a huge part of the investment and the capital and everything of that business that you use that loan to set up. So by the time you put your pen to paper and start calculating, there might not. Be any profits or little to no profit left for you at the end of the day.
And even if you’re thinking that in the next few years they’re going to get the whole money back in the next few years, the interest that that money is going to accrued or acquired together. We also make the loan amounts to increase too with time. So you will never come out of it is a dead end and he is the best that you don’t even go through that line at all.
The best thing is to actually find a solution and get out of all these things. Never touch lone build your investment capital as it should be. Then do your thing the right way. Instead of banking on loans to do with loans might not help at the long run or it might take the life out of your business as an entrepreneur or as a would be business owner.
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