In 2005 I had a piece of property I was trying to salvage. I kept borrowing money to try and buy myself enough time to make more money from it. I was very optimistic about being able to.
Then the 2007 real estate crash happened and caused me to lose the property to a foreclosure and left me with a good amount of tax debt.
At that point it made me realize I had held on to the property and my dream of doing more with it too long.
I was too emotionally attached.
I would have been much better off in the long run with cutting my losses and selling earlier on and not borrowing the money when I had the chance, with hindsight being 20/20.
Instead, I went from being in the frying pan, to being in the fire.
Because I was a dummy of a business man, who is still learning to be smarter today.
I sent good money chasing bad money.
As they say in the real world of business. You get the lesson first and the test last.
One of the services I help small businesses acquire is emergency capital when they are unable to get a loan from their bank.
And right now there are a lot of small businesses unable to get the funds they need because the SBA has run out of money.
That’s where someone like me comes in. I’m the financial fireman.
It cost you more to borrow the money, but it’s because it saves you time and we don’t require collateral.
But that doesn’t mean you should still borrow the money if you qualify with us or even a traditional lender.
Especially personally from the government. Because if you end up in a position where you can’t pay, they can ruin your day like no other lender.
It’s really gonna depend on how bright you see your financial picture is gong to be according to your past numbers and the future outlook of the economy.
Because debt doesn’t solve problems, financial freedom education does.
And if your financial freedom education is low, the debt will bury you and make things worse.
So when your deciding to borrow money, especially during this crisis. Be sure it’s the smart move by making sure you have a sound and realistic plan for it.
Because when emotions go up, intelligence goes down.
This is why for a lot of small business owners, as much as it saddens me. Might be better off with not borrowing any money and just cutting their losses and moving on, and just starting over if possible.
Because many small businesses, quite frankly should have closed even before covid-19 hit. Because sometimes as entrepreneurs we often tend to fight to much to try and keep our dreams alive.
When it may be better to just start fresh.