GREY:WFEMF - Post by User
Comment by
clk_vestedon Jul 12, 2012 12:18pm
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Post# 20107116
RE: Couple of Things
RE: Couple of Things A theoretical payback of 2 years does not mean that you plan your cashflow to be 100% loan repayment. They have to fund operations and possible new activities. The interest rate is quite reasonable, so it makes sense to secure it for a longer term. They can then maintain a reasonable float, supported by ongoing revenues, that allows them to pursue opportunities and ongoing operations without having to go begging for money every time. It strikes me as fairly sound business practice, not unusual at all.
clk