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View Diary: Not All Small Businesses Need Loans for Payroll! (85 comments)

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  •  Equipment purchases can put you under too (1+ / 0-)
    Recommended by:
    decembersue

    Quit fooling yourself.  There is not a difference in what loans are used for.  The money does not know what it is being used for, it only knows it must be paid back with interest.

    Say you borrow $3 million for new equipment at 8%.  You need to come up with $240,000 in interest plus make some inroads into repayment of that debt.  If you don't, the bank shuts you down and takes all the security you pledged to get that new equipment.

    •  You can sell equipment (0+ / 0-)

      once the payroll is payed out, it is gone. Equipment
      is an asset, and is there well beyond the loan date.
      Though you shouldn't borrow more than you can pay
      back.  Business models my ass, just use common sense.
      I never bought a single piece of equipment unless a client
      showed desire, I will leave speculating to Wall Street.

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