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Interest-Free Loans to start your very own
business. Interest-Free bridging finance to buy
a property. Interest-Free cash to buy that
franchise that you have long hesitated over. Do
you think you would get a project in your life
moving more quickly if you knew that you could
borrow money without having to pay any interest
on the loan? Are interest-free cash loans
readily available?
When starting a business, for example, having
enough money for the business may not be the real
challenge facing you. The real financial issue
may well be a combination of start-up cash as
well as your "survival money" i.e. how can you
continue to "survive" and pay your bills whilst
getting the business going?
Research shows that most Americans and British
people have very little in the way of savings. A
report in 2006 said that Americans were keeping
just $1.80 for every $100 they took home in their
pay-packet and this level of savings was going
down. Similarly, in the UK, more than 25% of all
households were reported in 2006 as having no
savings whatsoever.
However, let's assume you have some money saved.
The money you have is more than most but is still
not enough to follow the Robert Kyosaki principle
of "Rich Dad, Poor Dad" fame i.e. only begin a
venture when you have two years survival money.
Instead, you have between 6 and 12 months money.
What would you do with your project, your
business, your vision, if you could engineer an
interest-free loan for a 12-month period or
longer?
Tony, a friend of mine in London, was absolutely
passionate about trading Foreign Exchange and
wanted to start a business trading currencies.
He had searched long and hard for a mentor that
was willing to take him under his wing and teach
him how to identify profitable "market
inefficiencies". (By the way, "market
inefficiencies" is just a fancy-pants term used
in banking and economics. It describes the
weaknesses and errors that exist all over the
financial markets that can be exploited for a
profit. Anyway, I digress. Back to Tony.)
Eventually, Tony found his mentor. He, also, had
capital to execute the trading plan suggested by
his mentor. Yet Tony was missing something vital
and that something was "survival money". The
savings he had made were not enough to sustain
him for two years. Likewise, his mentor wasn't
going to hang around waiting for him to be more
comfortable first. After all, why should he, his
trading acumen was in high demand. So what would
Tony do – give up on his dream, passion and
vision? Or would he be willing to do whatever it
took to bring his vision to life?
I had worked in Investment Banking for 16 years
alongside some geeky math whizz-kids that seemed
to create financial products out of thin air.
Banking had, sort of, "brainwashed" me to think a
particular way and I realised that I could do
some very straightforward "financial engineering"
of my own to create an interest-free loan for
Tony.
Above all else, I had discovered that I didn't
have to be a math genius or a geek or have a
perfect GMAT score to make it work. All I needed
was the Internet and a reasonable credit rating.
In the same way that the Wall Street, London,
Tokyo and Sydney brainiacs used the tools at
their disposal to minimise interest payments (or
avoid it totally), I recognised that I could do
the same too.
And that's what I did. With a few careful steps
I engineered a loan for Tony. He had access to $
30,000 for 13 months and never paid a penny in
interest. (He just had a small upfront charge
for borrowing the money and I later found a way
to reduce this charge much further.) He didn't
need all of the $30k but it was there for him
nonetheless.
Tony was in a business that allowed him to
generate revenues quickly and had peace of mind
knowing that he had sufficient money to survive
during the critical start-up period. Was this an
ideal solution? Not by any means. Real-world
business is far from ideal. However, it was a
solution that allowed him to work towards his
vision more quickly because of some creative,
interest-free financing.
So, whatever your vision or dream is, an interest-
free loan can be engineered very simply indeed.
It most definitely is NOT rocket-science. Anyone
can create a loan where there are zero interest
payments. It's not complicated and can be put
together quickly enough.
In order to make a deal more profitable, one of
the first things the "big boys" in American,
European and Asian banks will look to do is
reduce, or avoid, the interest payments on the
money they borrow. This, alone, should be a big
clue as to what we should be doing too when it
comes to borrowing money. After all, there aren'
t that many poor investment bankers in the world
now are there?
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