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Inflation doesn’t pay you. Revenue does.
by quickthrower2 4y ago
Inflation doesn’t pay you. Revenue does.
- onlyrealcuzzo 4y agoIf inflation really would continue at 80% for the year - and you can't pay back a ~10% loan - it means your business is going down by ~70% per year... There's always risk - but I don't think it's as risky as you might think. Even if times are bad because inflation is high and your business drops by ~50% - you'll still come out ahead.
- quickthrower2 4y agoInflation is a measure of how certain products and services go up in price, but not all, your product might be out of demand as people’s stagnant wages are consumed by rent and food increases. And then there is the issue of costs going up! That said: There will be opportunities if you can borrow at 10% and stay solvent to invest in something well through in this extreme case.