▲ | vidarh 7 months ago | |||||||
If their business grows at a rate higher than interest, there's no reason why the bank wouldn't be happy to add the interest to the loan. If their business is growing at a rate lower than interest, it's a poor investment and they ought to sell it off and put their money somewhere else. Such as lending it out. | ||||||||
▲ | ivanche 7 months ago | parent | next [-] | |||||||
This is just delaying the payment. OK, let's assume they do it for 1,2,3 years and that the bank is happy not to receive any payment in those 3 years. Now they've accrued interest-on-interest and the more time passes the more they'd have to pay back. So my question remains - one day they'd have to pay it back and on that day they'd have to sell assets and pay 36% tax. | ||||||||
▲ | ag56 7 months ago | parent | prev [-] | |||||||
> sell if off To who? How? | ||||||||
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