Let's say my business has an overdraft facility with a bank at around 3% interest rate but due to the coronavirus, business is slow and I can manage with my own reserves so I am not using that overdraft facility.
Now there are 2 opinions:
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Investing on borrowed money is a very bad idea.
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As long as one can generate more returns than the cost of debt, the debt should be used to increase wealth.
What is the general consensus about this situation? Would you guys use that overdraft facility to invest in the markets or stay away? If you chose to invest then what will be your go to options?
Submitted June 02, 2021 at 04:24AM by perfectionisenemy https://ift.tt/3iongrx
