With the U.S. Government setting out their PPP Loan program, as well as some businesses paying it forward like Lowe’s did – it left another set of problems looming
The top two questions were
- How do I use it wisely?
- If I don’t, what do I do about funding?
Since we don’t all have a connect like Kanye and country clubs to navigate a PPP loan, we got to thinking, and testing
As we dug deeper we found that creative many business owners were facing similar questions and concerns
What are the benefits of getting a personal loan to cover business or personal expenses during a tough financial time?
What’s involved in getting a loan as a business owner?
Are there any downsides to using personal loans to fund business or personal expenses?
Are personal loans a better option than trying to apply for the federal coronavirus small biz relief options available?
Why or why not?
What are your best tips for managing small biz finances as reopening commences during coronavirus?
First things first, if there are grants you can apply for, by all means, never turn down free money. That’s common business sense.
As many a business owner will tell you, where there’s a will, there’s a way
We caught up with Sean Gray, our go-to Rogue for all things Sales and Networking. This being something he loves solving, he got excited and had a lot to share:
“Lending is getting tighter and tighter (aka borrowing is getting harder). But consider this…
If you could borrow money at 0% interest and then pay it back in the future with cheaper dollars (a result of inflation) all the while using that money to grow your business or control more assets, would you take advantage of that? Or simply watch as the rich get richer…
“Sure, there may be interest, but often times you can take advantage of 0% ULOCs (unsecured lines of credit), with a ULOC you can use the funds for absolutely whatever you choose.
Now let’s say, maybe you don’t qualify or the guidelines of what you can use the money for might not fit your needs, you’re not out of luck… you still have the opportunity to borrow money at extremely low-interest rates (if not 0%)… which isn’t just timely in today’s market (it’s what the rich are doing).
The most common questions I hear about this tend to be:
- What if I can’t pay the money back?
- What if the credit lines dry up?
- What about taxes?
In the event credit lines go belly up, he offers these Major Keys to remember and practice:
“You want to take action quickly to convert the borrowed money into assets, or if you’re not quite ready for that, at least make it liquid.”Sean Gray
- Borrowed Money is Leverage: It can be used to expand, buy or control a new money-making asset
- Borrow While You Still Can: Rates are moving to your advantage, get your credit in order and execute on this asap, the idea is to borrow money to create leverage for yourself, this means it financing expanding your business to produce more cash flow and/or control more assets – which in turn, gives you more cash flow
- Turn your Credit into Cash: Turn your ULOCs into cash, wait for the market correction then go pick up assets for pennies on the dollar while the majority of people are kicking themselves for not having done what you did sooner.
- Control Assets for Cashflow: Quick fun fact, there is no tax paid on borrowed money. (Hint hint – this is how Real Estate Investors pay virtually zero in tax).
For the rest of the questions we discovered during our research, we’ll be having Tom Burns, known to his clients as Rich Doctor. A practicing doctor who would go on to experimenting with different business models until he found the one that allowed him to practice with love, triple his income, and partner with Robert Kiyosaki, author of worldwide bestseller Rich Dad, Poor Dad.