In modern society, it is no longer realistic to rely entirely on one's own strength for primitive accumulation of capital. The origin of any huge wealth is mostly based on borrowing. In other words, if you want to make a fortune, you must first borrow money. Borrowing is an effective method. There is a famous saying in Western business circles: Only fools use their own money to make a fortune. Therefore, those who have no money should fully understand this and consider how to borrow money every day as much as possible. Of course, you have to pay interest when you borrow money, but don't be afraid. If you use other people's capital to make money, the income you earn may far exceed the interest you pay.
Asian biscuit king Rajan Pillai is not so much a biscuit king as a loan king. His company's turnover in 1991 reached US$700 million. But he was heavily in debt. In 1992, Pillai's debts reached $115 million.
In comparison, what does the money you borrow count?
Don’t be afraid to borrow money. As long as you have extraordinary courage, full of confidence, and the right choice, you will make a lot of money. Although Pillai's company borrows heavily, he will not be overwhelmed by debt. He concentrated the borrowed money on investing in the grain industry, which would not suffer a recession. People have to eat! In this way, Pillai would not be in danger of fetching water with a bamboo basket.
Many people without capital can do lending business. As long as your credit is not a problem and as long as you use the borrowed money to do useful things, there will always be people willing to help you. Realize this and you won't have any problems with your borrowing.
Remember, making money by borrowing money is the wisest way for people without capital to make a fortune.
From a poor lawyer to a billionaire, Akerson made his fortune by borrowing money. In 1960, 28-year-old Ackerson was still working in his own law firm in New York. Facing so many rich people, Akerson couldn't help but feel bitter about his poor situation. We can't live like this anymore. He decided to try his luck. Is there any good way? After thinking about it, he finally thought of borrowing money.
After arriving at the law firm early in the morning and handling several legal matters, Akerson closed the door and went to a bank on the next street. After finding the bank's lending department manager, Akerson claimed that he wanted to borrow money to repair the law firm. In the United States, lawyers are untouchable. They are familiar and well-connected, because in a country governed by law, lawyers have a high status. So when he walked out of the bank, he had a $10,000 cash check in his hand.
After walking out of this bank, Akerson entered another bank, where he deposited the US$10,000 he had just received. It took less than an hour to complete all of this.
Afterwards, Akerson visited two more banks and repeated the same tactics.
The interest on these two ***$20,000 loans was offset by the interest on his savings, which was generally not much different. After only a few months, Akerson withdrew his savings and paid off his debt.
As soon as he entered and exited in this way, Akerson established initial credibility in the above four banks. Since then, Akerson has played this trick of short-term lending and early repayment in more banks. And the amount is getting bigger and bigger. In less than a year, Akerson's bank credit was already very reliable. With his signature, he can lend out $100,000 at a time.
This is how credibility comes out. With a reliable reputation, what else do you have to worry about?
Soon, Akerson borrowed money again. He used borrowed money to buy a failing company in Philadelphia. The United States in the 1960s was a good time to do business. As long as you work hard, making money will not be a problem at all. Eight years later, Akerson became the big boss, with assets of US$150 million.
If you don’t have capital, you don’t have to worry. In order to make a fortune, you can borrow money. Of course, borrowing money will not be brought to your door by others. You have to find a way to borrow money smartly. Only in this way can you get rich easily.
Borrowing money to do business means running a business with debt. You make your own money by borrowing money. Doing business requires capital. When you borrow money from others, you have to pay interest. This is natural and natural. As long as you are courageous, have a unique vision, deal with it properly, have a good eye on the market conditions, understand the changing rules of the market, and continuously accelerate the turnover, then the money you borrowed will be much more than the interest you paid. To put it simply, debt management means borrowing other people's money to earn your own share, then returning the principal and interest, and the profits belong to yourself.