In 2021 I took advantage of the low interest rates to front-load some major business expenditures and give myself some reserve funds to smooth out my revenue stream over the next two years. I got a business loan at a great interest rate, so I borrowed more money than I needed. It would be ludicrous to pass up an opportunity to borrow money at 3%-4% when inflation would be running at 6%-8% for a couple of years.
We started our business in ‘78 during the Carter years, when interest rates were up to 14%. instead of borrowing from a bank our supplier sold up equipment on time. We got a very good contact that actually paid on the agreed time so we could pay off our equipment way ahead of time. During this time the banks wouldn’t loan us money on accounts receivable. After we made several large deposits to our account the banker asked us for a meeting where he pitched us on borrowing money to build our credit. We never did and built our credit by paying for our supplies when we got them.