Texas/New Mexico Stateline | newholland4life - 8/29/2014 10:33
just wondering what people's thoughts were regarding debt...
I don't always borrow money to operate, but when I have extra cash I pay down long term debt. The interest is about the same, so why keep cash on hand 12 months of the year while the mortgage is accruing interest all the time? When instead I can borrow on a line of credit for 3-6 months and only pay interest those months I use it?
I suppose if you don't have any long term debt, then it wouldn't make sense if you had the cash to operate. But I don't know any operators that are that way except the old and non-expanding guys. |
which would the banker rather hear?
