Good-Guy
VIP Contributor
Mankind has been borrowing things for many decades and the history is full of incidences when the individual persons, business organizations, and even the governments have borrowed money due to various problems. During the Covid-19 pandemic, many companies borrowed money so that they could save themselves from going bankrupt. The same thing happened during the 2008 crisis when the stock market crashed in such a manner that many companies had no other option at all, but to borrow money.
Usually whenever we hear the term "borrowing", we get the idea that a company, organization, or any other individual is seeking loans because that particular party is having some financial problems and taking the loan is the only thing that they could do as a last resort. However, I have always wondered if money or financial crisis is the only reason why many companies or a single person might be seeking loans? I think one of the other reason why someone might want to take loan is the fact that they do not want to mortgage off their valuable property or they might not want to use their capital due to some other circumstances and they choose to take loans instead with the intention of paying off it when they earn a good amount of profits. What do you say?
Usually whenever we hear the term "borrowing", we get the idea that a company, organization, or any other individual is seeking loans because that particular party is having some financial problems and taking the loan is the only thing that they could do as a last resort. However, I have always wondered if money or financial crisis is the only reason why many companies or a single person might be seeking loans? I think one of the other reason why someone might want to take loan is the fact that they do not want to mortgage off their valuable property or they might not want to use their capital due to some other circumstances and they choose to take loans instead with the intention of paying off it when they earn a good amount of profits. What do you say?