Ask Geri: Should I Take Out a Loan to Finance a New Business Venture?

Posted 1 CommentPosted in Business 101, Ask Geri, Credit and Loans, Personal Loans, Business & Entrepreneurship

In funding major expenses such as a home improvement or getting car, tendency is to take out a loan rather than deplete Juan’s savings. No monetary return (i.e. actual cash inflow) is expected from a much improved home or new car (except for appreciation in property value and net worth) but Juan is still willing to get a loan as long as he can pay for the amortizations. What more a business wherein there is a chance, no matter how small, of a monetary return.

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