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4 min read

Weekly Insights: Good Debt & Bad Debt

Jan 18, 2022 3:00:00 PM

Daily Data 📈

What's the difference between personal debt and business debt? Stigma, mostly. In a recent article published by Fast Company, podcaster Lane Kawaoka shares how lending is often essential to generate the cash flow needed to sustain businesses throughout their existence.

The Average Small Business Loan Amount is $107,000Business loans and merchant cash advances are incredibly common, though differ in their approval rate, interest rates, and funding amount.

Last year, 43% of small businesses applied for a loan last year, and currently 70% of small businesses have outstanding debt.

If your ultimate fear is being turned down, not to worry.

In the past year, only 14% received a portion of their requested funds, and 9% received no capital at all. Don't forget to listen to Chris' podcast for some actionable tips on procuring financing.

Ultimately, businesses carry a credit score just like individuals and—regardless of what venture of investment you're making—building good credit is essential.

Statistics from Fundera, by NerdWallet



Make the Most of Your Leverage

Gif of vintage rollercoaster

Savvy investors utilize leverage to minimize the amount of personal equity put into investments while maximizing their efforts to scale their portfolios.

Leverage is used in real estate for two primary reasons. The most obvious is a lack of capital. We’ll put down a downpayment and borrow the rest of the cost of the property. Leverage isn’t always sought for lack of funds, though.

Read the full article here.



The Take

The financial setbacks caused by the pandemic have left many Americans worried about retirement. While well over half of Americans across every age group have some retirement savings, fewer than half feel like they are on track. Be the exception.

Preview of "6 Ways to Protect Your Retirement Assets & Income"

Click the picture above to download the Take of the week! 



The Word

Check out our recommended reading for the week: 

 

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