Alon Gal advises: Should a business owner take out a loan?
The business coach comes to Walla! Business: Every week a wave advises on areas of life that concern us all. This time: A small business listener who is upgrading and is debating how to fund the move
Business owner (Photo: shutterstock)
Business owner checks financial accounts (Photo: ShutterStock)
Amit has been running a construction business with her husband for 25 years and the two will purchase a machine that will upgrade their work infinitely. In his program on Radio 103FM, a colleague of business coach Alon Gal says: "We have a fortune in the business, the bank continues to offer us a loan and I insist on focusing on the money we have. People in the field tell me I make a mistake and that this is a recognized expense."
Alon Gal replied: "Credit in the business is taken when you do not need it. This is a sentence that every business owner needs to know. An absolute majority of business owners take credit when they have to, similar to your perception. When a business owes credit it is in poor financial condition and also requires repayments. Less Net Income - Business Credit Takes When You Don't Need Credit You have to ask yourself if you use business leverage credit, and if you are planning to purchase a business upgrade machine, then this is a good loan, of course you should compare the loans. In addition, you must ascertain whether the repayment of the loan may affect you in the business.
More in Walla! NEWS More in Walla! NEWSAlon Gal advises: Should the listener sell his apartment?
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A colleague noted that she has additional money that she manages in solid stock that gives a return. "I don't go crazy with the investment and constantly ask me why I don't buy a property either." Gal replied: "Money can make money and everything is fine. It works for you and should not be in hysteria. In this case, I am on your side and think you don't have to take any assets if it doesn't work out for you. Low interest rates, take a loan, leave your money and earn it "You have to know how to leverage when possible. Incidentally, in the private household."
