Loans

[debtman7]

What is the current rate for a loan? 8%? I am starting a buisness, but I found another business that is an ok deal, it costs. However I can pay the interest with half the money it generates, and then use the other half to decrease the loan. It will take me 14 years to end the loan. Provided I don't put any other money source into it, which I probably will. The thing is I am 17 right now, and I could easily live off this income source the rest of my life.

However, I am not sure what I need to get the loan. My company probably has 3.7% of the assests needed to purhcase this business. Can I get a loan on that? Maybe once I start the company and get customers I will be able to get the loan? How much do I need to get a loan?

Another thing is, If I acquire this Business. Can I hold it as a sperate entity? For example, The company I am making now will be a C-company, now will I be able to make the other one a C-company and own that, but not have the to umbell each other. It is for Pension plan reasons.

Thank you

[Arlene M Passalacqua]

I understand what you're saying about the loan, but do you know for sure this is a business that will continue to grow (at least at the rate of inflation) for 14+ years?

[debtman7]

It is actually 14 years at max. Nothing is guarenteed. I mean this business could be bombed by terrorists, or a nuclear fallout could happen. Or maybe it could be hit by an airplane, or a boat.

However, at its current rate it is infact Inflation proof. Actually, I talked to a friend that has a deal he is going to sells some parts, then I will have enough capital to take a loan out and purchase this business. If it turns out it is ok, it might be to much of a liabilty due to size.

We also have a few other businesses in mind we want to purchase. So that will going down at reletively the same time. The second business, is of course not guarenteed, but at its current standing, it should be good, and we won't even have to take out a loan.