Borrow money equal to your monthly income

 
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seo



Joined: 16 Mar 2006
Posts: 1999

PostPosted: Sat Jan 20, 2007 2:20 pm    Post subject: Borrow money equal to your monthly income Reply with quote   

What do you think about borrowing money equal to your monthly income to grow your business? Let's say that you make 4k a month. In that case, you borrow 4k to grow your business. What are potential risks? What can you do using this much money?
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altyfc



Joined: 02 May 2006
Posts: 670
Location: Aardvarkland

PostPosted: Thu May 10, 2007 9:21 am    Post subject: Reply with quote   

The potential risk is that you could lose 4k. I don't think spending your monthly income to try to move your business up to the next level is necessarily all that risky. Of course, it's going to depend on how that money is spent, but the worst case scenario is presumably having no profit for just one month.
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