05/23/2022
I have a love/hate relationship with loans. As you can see below I got a 5 year term loan for 14k in January this year. Interest rate was 25% meaning if you take the whole five years to pay back you would be paying back 25,000 which is almost 2x what I was funded.
On the second picture you see 10k has already been paid back in 5 months. I never use the whole term my goal is to get the money flip it and pay it back in 6 months. That way I only pay interest on the months I had it. I know everybody want funding and loans but you gotta have a plan because once that money drop those payments start rolling in & the worse thing you can do to your business credit and personal credit is to default on those payments.
If you don’t have a plan stick to credit cards & lines of credit. That way you only pay for what you use.
