My loan experience

As a small time investor I could not avoid but to loan some amount of money from the bank last vacation that I had. I borrowed P200,000.00 from the local bank and promised to pay it in two years. We had an agreement that the amortization will be monthly until I finished it in two years plus the interest which is 13%. Everything went fine but unfortunately I was off-tangent because of my other unexpected expenses. Here is an advice to avoid this kind of mistake if you plan to loan.

Some of my advices when you plan to loan is to make it sure that you can pay it no matter what. Like for example, you have to identify all the holes in your business. For instance your electricity bills, car maintenance and renovations. Set aside at least 30% of your maintenance for emergency. Also identify your cash flow, where the money is coming from and where it is going out. Another thing is if possible look for other way to loan like if you know some relatives and friends who are willing to lend their money so borrow from them first. Even if you gave interest, at the time when you have some compromise at least they would listened and give you some extra time to pay and you will not be penalized.

A mortgage loans is not simply a joke. Take it seriously as a businessman, image is number one key to success.