Many beginning wealth builders
think that they must have a
business loan for business purposes. This is not so!
Suppose you borrow $5,000 using a
personal loan. Isn’t that $5,000 the same amount of money as $5,000 borrowed on
a
business loan?
“Yes,” you answer, “but what
about interest? Wouldn’t the interest
be much higher on the personal loan? Why
pay higher interest rates?”
These are excellent questions and
they show that you’re really alert. Now fellow fortune builders, I want you to
listen to your good friend, the author of this book. I’ve made a pile of money
using OPM so I know what I’m talking about. This is what I say:
When you’re first starting your
fortune hunt, interest on OPM is unimportant; what is important is that you
obtain the OPM!
When you borrow from a bank or
other licensed lender the interest you pay is not excessive. Further,
If you invest OPM so it only
earns the interest you pay, you’re in the wrong business and you’d better get
out before you go broke!
Also, I want you to remember this
key fact about OPM: Interest you pay on OPM is easily proven and it is a
legally deductible item on your income tax return.
So while a personal loan may cost
you a few dollars more interest payment than a business loan, the extra cost is
insignificant. What does matter to you and to me in our fortune-building
efforts is this:
Personal loans are the easiest
kinds of loans for the beginning fortune builder to obtain. Hence, they are
worth concentrating on until a business or investment program is solidly
established.
When you’re starting a business,
expanding a going firm, or getting an investment program underway, you usually
have many more items on your mind than money. So if you can get the money you
need in hurry you can push ahead quickly and earn more. Since a personal loan
will give you the money you need in a short time-usually within four to
twenty-four hours after you apply for the loan-you should carefully consider
applying for a personal loan the next time you need money for business.