As we enter the New Year, 2011 has some hope in front of it but I’m not ready to predict anything too exciting.
For business owners, interest rates remain very low which makes capital for those with good credit ratings readily available. 3.25% interest rates are not uncommon right now for those who know how to obtain it. Thus, it becomes a question of how certain you are to generate net revenue that exceeds what you borrow at the going interest rate.
Historically, I’ve disliked borrowing money in any way. The only times I’ve had to has been to cover accounts receivables and tax bills. Because 2010 was a reasonably good year for my company, we aren’t likely going to have to borrow. Our games unit underperformed this past year but the other two units made up for it.