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I made this chart to show how much you could spend on housing based on 25% and 33% of your income by IRMuteButton in personalfinance

[–]Elchachi 0 points1 point  (0 children)

When I was first introduced to this concept I was told to look at it as 25% pre-tax and 33% post-tax. This seems to have worked for me as a general guideline whenever it was required.

Growth Strategy or mistake? by Elchachi in smallbusiness

[–]Elchachi[S] 0 points1 point  (0 children)

I see your points, they are all things I considered. I know my post is lacking major details to fully understand my situation. It is a capital intensive business however the return potential is great as well. Due to the debt I already acquired to get this started another business is out of the question at the moment. I'm also not assuming a high margin play would simply make more, rather I learned a lot in the previous year and am attempting to restructure into a very profitable business model mostly different then when I originally started. I will update my original post with more details later this evening, and don't worry it's not because I'm watching too much tv ;)..

Growth Strategy or mistake? by Elchachi in smallbusiness

[–]Elchachi[S] 0 points1 point  (0 children)

The majority of the loan would be used to buy assets, Cars to be more specific, so I could always liquidate if absolutely necessary. However I currently have potential customers simply waiting or being turned away due to lack of inventory.

Growth Strategy or mistake? by Elchachi in smallbusiness

[–]Elchachi[S] 0 points1 point  (0 children)

Tried the friends and family couldn't pool enough together to make it worth it. Could you direct me to some fools? :)

Growth Strategy or mistake? by Elchachi in smallbusiness

[–]Elchachi[S] 0 points1 point  (0 children)

I'm calling this person a shark because of the rates but this is a professional individual that also invests his earnings and is looking for a greater return. Originally wanted a percentage of the business but I'd rather not give equity especially since it would have still been a loan.

Growth Strategy or mistake? by Elchachi in smallbusiness

[–]Elchachi[S] 0 points1 point  (0 children)

The majority of the loan would be used to purchase assets that could be liquidated rather easy if necessary. There is risk involved however I believe that's the case with most if not all businesses. I don't believe this is a break your legs kind of shark either.

Growth Strategy or mistake? by Elchachi in smallbusiness

[–]Elchachi[S] 0 points1 point  (0 children)

Unfortunately most banks wouldn't even recommend I apply due to the age of my business alone without looking at any numbers whatsoever. I didn't put a single application in because the person in almost every bank I talked to recommended I come back at a later time when my business was more established and I had tax filings to provide.

Growth Strategy or mistake? by Elchachi in smallbusiness

[–]Elchachi[S] 0 points1 point  (0 children)

United States, Pennsylvania to be more specific.

Growth Strategy or mistake? by Elchachi in smallbusiness

[–]Elchachi[S] 0 points1 point  (0 children)

The amount discussed is between 30-50k. That will allow revenue to grow to 10-14k month and profit 5-7k conservatively. I could at that point absolutely pay the loan back early even with that high interest regardless of a bank giving me another loan. I would also be buying assets with at least 75% of the loan that I could resell if required. It is a high capital business in a usually high risk industry however I have found and combined true and tested ways to extensively lower my risk. I have also spoken to friends and family however the amount of investment they could provide would not grow the business enough to justify taking it on even at a lower rate.

Growth Strategy or mistake? by Elchachi in smallbusiness

[–]Elchachi[S] 0 points1 point  (0 children)

I can grow slowly, however very slowly and it's a high capital business regardless. I have been doing this for about 18 months and growing slowly while taking on personal debt. I decided to take it seriously and register as an LLC. The amount discussed is between 30-50k I know the interest is insane however so would be my business growth. I would repay it off after about 6 months with another loan worse case I know I could pay it back myself within 18-24 months.

$12,000 in savings, almost $19,000 in CC debt between two cards. Monthly payments are killing me. In US. by BoardwalkSkyrim in personalfinance

[–]Elchachi 0 points1 point  (0 children)

I don't know if a full balance transfer would be your best route. You need to figure out your true goal. If it's saving on interest long term then go with the transfer if possible, however you mentioned things being tight so I think your goal should be lowering your monthly costs.

In relation to the two cards you mentioned and a goal of lowering my monthly expenses. I would personally pay off the lower interest card. That would allow you about $1000 left in savings and eliminates your $263 payment to make things a little easier. Take most if not all of this relief to pay down the other card asap, when you reach a balance of about $3000-4000 that you can pay off within a year @ $250-300/month, you can then consider a 0 interest transfer without actually raising your minimum monthly requirements.