Huang Shan Today

People perceive loans as wasteful and something to be availed of only as a last resort. However, loans such as personal or even for Business Finance can allow purchases of things that are normally unaffordable, with just a slight discomfort. Take for example a US$5,000 new car. A 1-year payment loan plan of a total of 20% percent interest rate becomes a total loan of US$6,000. This is just US$500 a month of payments or US$125 a week or US$25 a day or US$3.125 per hour. This is leaves about US$75 a week or $300 dollars a month for other expenses on a minimum wage of US$5 an hour. Thus, Personal Loans are not just for hard times but also for some good times as well.

These same principles apply to Small Business Financing. Buying new equipment, like a new delivery truck, effectively doubles delivery speeds and quantities. This allows double the number of customers that can be serviced and therefore can double the sales. If that truck cost US$10,000, double the car cost in the previous example, the cost is as simple as US$50 per day profit increase. Thus, if the business is already earning US$100 a day, doubling sales will get another US$100, US$50 of which goes to the 1-year loan payment for a net profit of another US$50. Thus, a Small Business Finance is not a thing to be avoided.