Post
Topic
Board Economics
Re: Dont just borrow money but for the right reason
by
RondoAnyar
on 19/01/2022, 04:13:18 UTC
It is not wise to borrow money in any business. All businesses may face losses. Even if the business loses, you will have to repay your loan. It can even be a financial burden for you if you can't afford it. And you don't just have to make up for the loss, you must make a very good profit in the business because you have to pay interest on the borrowed money as well as your own profit. Imagine for a second what will you do if your investment goes into a lose.
True, if we use borrowed money for something that does not guarantee success, it is not wise. If you calculate the profit, it is true that you are very profitable because you don't take it from your own pocket. But when we experience a loss, we lose 2 times. Loss in investing, of course, plus having to pay the money we borrowed.