Quote:
Originally Posted by ADL Colin
Why not? My bank will happily loan me money at rates WAY lower than that. I have an open line of credit. I don't understand why anyone would borrow money at 24%. That is worth than a credit card and those people are downright thieves.
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Well, not everyone wants to go through the hassle. Especially when you are self employed.
I have done the 20% flip on short term investments with friends. For example, I have a new project I want to launch. I could pull money off my card, or cash in something to get the money. Or I could just borrow from a friend. Flip him back a 20% on a 6-12 mo. loan.
He owns no part of my company, or project. I get the money. Everyone happy.
I get a jump start on something, do not have to use my money, or more accurately, do not have to go through the hassle of cashing things out, or waiting, the bank hassle, credit card, etc. Just get the money, shoot the material, get the website done, whatever.
I've done this a number of times whether a new project, or I wanted to rent a house and shoot a ton of material and had the girls all lined up. I even paid back early. Just makes it nice and easy for me with out having to go to the bank, tax records, up to date business profit and loss, waiting, and so forth. They get to make some money with their money. I get to jump start a project, or new site, shoot 3 months or material, whatever.
Works out nicely.