Hello, everyone.

This is Enta.

I'm at a company in Nagano today ^^

As for why I came here today, I came to discuss a loan with the bank.

 

This is also one of the important responsibilities of a business owner, but,Debt-free management is the best!

I think a lot of people feel that way.

 

But in reality, whether it's through loans or whatever else, companies that have a solid cash reserve are the strongest!

It may be ideal to have a substantial amount of cash on hand and be debt-free, but,

In reality, being debt-free means you lack creditworthiness (social credibility) in the eyes of banks.

 

I'm sure most of you have credit cards.

Use it every month and pay it back every month.

This is actually the same as gaining social credibility.

Credit card companies figure that since this person always pays back what they borrow, they can lend to them again next time.

 

For example, if you’re getting married and buying a house, and you’ve never applied for a credit card because you’ve always paid in cash,

Since you have never engaged in margin trading (and have no trading history), you may have difficulty getting a loan approved.

That’s why it’s better to get some experience with margin trading while you’re still young (though some people hate it, lol).

The same applies to companies. For example, suppose a company buys a machine costing 30 million and pays for it with 30 million in cash.

That means 30 million in cash will be withdrawn from the account.

 

But let's say you bought it with a loan from a bank.

I borrowed 30 million from the bank and used that to pay for it.

Let's say you took out a 5-year loan from a bank. (Let's ignore the interest rate for now.)

30 million ÷ 60 months = 500,000 yen

We'll refund 500,000 yen every month.

 

If you don't have any cash on hand when you suddenly need money—like if a massive natural disaster strikes the month after you buy a machine—you're really in a bind, lol.

If we don't have it, that's the end of it.

Borrowing money from a bank means,

Based on the example above,The FutureI borrowed five years' worth of time in cashThat's the idea (the money I'll likely be earning five years from now)

Taking out a loan is often described as "buying time."

In return, you pay interest to the bank.

The same applies to leased properties.

This is a basic concept in business management, but,

A company goes out of business when it runs out of cash.

A company won't go out of business even if its employees leave.

As long as there's cash, the company won't go under!

 

Even if a large number of employees resign, the company will be fine as long as it has cash on hand. (Although it might lose credibility if it can’t get the work done.)

It's pretty simple: as long as you have the money to pay, it doesn't matter if the business goes under, right?

 

That's why I'm going to the bank today to discuss taking out a loan lol

That said, since I’ve been paying off the loan and the balance has gone down, we’re thinking about refinancing.

I keep borrowing large sums and paying them back within a few years.

 

Well, I do use it when I need to, but,

For a small company like ours, as long as the cash is flowing, there isn't much need for us, lol.

(So you're saying I shouldn't borrow it? lol)

 

Since this money is strictly for emergencies, maintaining a good relationship with the bank is exactly what a win-win situation looks like.

As a result, it is not uncommon for business owners to act as guarantors.

That's why they say the risk for business owners is 25 times greater than that for regular employees (I saw that somewhere lol).

Please be aware that business owners bear that much unseen responsibility.

It's not like I'm just standing there with a dumb look on my face, you know? lol

 

So, with that in mind, I'm off to take on some risks with a positive attitude again today ^^

This is absolutely essential for the company's future and for the employees! lol

 

See you later.