Is borrowing 90% of the purchase price of a business a good idea?
Currently, American entrepreneurs are able to put only 5% down and borrow 90% from a bank and 5% from the seller to buy a business.
This is a lot of borrowing. Otherwise known as leverage.
Is borrowing $19 for every $1 of your own money put into an acquisition a good idea?
Does it matter WHO you borrow money from?
I answer these questions and more from a viewer who worries about the risk of a big bank loan.
Check out the conversation here: https://youtu.be/-ocQGY2LuGE
Here is the video I mention about a 90% financing disaster: https://youtu.be/-CF-b7QdctQ
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