if u want to open up a bussiness, let say a restaurant.u don't have the money to build up the building.u need $10000.why not borrow $10000 from a loan shark(yes,dangerous indeed but plis read more).use the money up and when its payback time, borrow another $10000 from another loan shark.pay him.do this until you've made a profit of more than $10000.is this strategy's good?
2007-06-29 17:10:37 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
You would be paying a huge amount to borrow the money and might not make as much as your interest.
Say you borrowed 10,000 and were paying 1,000 a month in interest but you only made a profit of 999 a month, you wouldn't be taking home any money at all then if the price of food or labor went up you would be losing more money.
Most restaurants go out of business pretty quickly so if you did you would still owe all that money at huge rates.
2007-06-29 17:20:11 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
Well, you can do that but have you thought about the interest you have to pay?
NO matter how you pay on time or not, it will be an amount interest that you will need to pay, minimum amount.
Why not make a saving plan that enable to save up to 10,000 then you won't have to borrow.
2007-06-30 00:27:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
no way!!!.....double loans risky. to be an entrepreneur take note u have to take risks, but only calculated risk. if ure sure then go ahead.
2007-06-30 00:16:10 · answer #3 · answered by Funk-Ski Biznez Man 4 · 0⤊ 0⤋