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Borrowing money to invest, Right Or Wrong?
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[QUOTE="Richee84, post: 243953, member: 42448"] Borrowing money to invest is a very good thing to do, though the investment must be done wisely and the loan must not be invested on a newly business that might not have all the require quality to survive. It is better to borrow money and invest the money on a good business that will generate good cash flow back into the hand of the investor. When money are borrow for investment purpose than consumption purpose, it is said that the money borrowed is well and judiciously utilities cause loan is better put to use that will generate more income than to just consume all the money borrowed. Though investing the money borrowed on and investment also has it own risk attached to it, before investing the borrowed money in any business then we must have carry out a comprehensive analysis on that business to be a viable business that have move from the infant stage to growth stage. Growth stage in any business is that stage where we have increase in profit as there is constant or increase sale. It is the stage where the business enjoy good turnover and higher imcome and all most business do here is to expand it business in other to gain more competitive advantage. If a borrowed money is invested in such kind of business in the growth stage then I think is worthwhile. [/QUOTE]
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