You Should Get A Loan For This Reason Alone! | Straight Talk with Lou Mosca

I had a client out in the southwest years
ago that was doing about $5 million a year. He struggled to listen to us. At one point he called me up, and my consultants
called me up and told me that the gentlemen wanted to borrow money from his dad to plug
a hole he had in his business. I got on the phone with him and I said to
him, “Charlie, how much money are you going to borrow from your dad?” He told me and I said, “Why are you going
to do that?” He said, “I have to because the banks won’t
lend to me.” I said, “Do you have a plan to play your father
back?” He said no. I said, “Then don’t do it. If you don’t have a tangible plan to repay
your debt, and in this case to your dad, do not do it.” He fired us on the spot. He thought that it was not good advice and
fired us on the spot. My point in telling you this is that debt
is okay if it’s being used to fund growth and you have a plan to repay it. Can’t be one or the other. Used to fund growth and you have a plan to
repay it. It’s used to fund growth or something, and
you have a plan to repay it. Solid plan built into your cash flow. If you don’t have both, do not borrow! Have a good day.

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