Renting Money

You have decided to take the plunge and start your own business. However, you need money and you don’t have any. Naturally, as with most people, you ask yourself “How much money do I have to invest?” That is the wrong approach. What you should be asking is “Where can I rent money, at reasonable rates of interest, that will allow me to expand, pay back the loan, and still make a profit?”

Now, the first thing to get clear in your mind is that you should never think in terms of “borrowing” money, because the very word “borrowing” is bad for morale. It could create a feeling of inferiority.

For too many people, the word “borrowing” leaves a bad taste in the mouth. Why should you, a self-made business person, harbour a sense of failure, just because you know it is necessary to use somebody else’s money rather than your own?

For example, if you are taking a holiday, and you and your family rent a boat for a day or a week, does that feel like borrowing? Of course not! In reality you are doing the marina a favour. It earns its living by “renting” boats and motors.

If you rent an apartment suite in a fancy new high-rise building, do you feel “cheap” because you are renting? Hardly. You know full well that the people who built the apartment complex in the first place made the investment so that they could rent luxury suites at a good profit.

So, why feel “bad” about renting money, especially when you rent only from people who need your business?

Firms such as banks, credit unions, finance companies, and other “money rental” operators need your business in order to exist.

“Renting” money is a sound and recognized way to do business. Therefore, starting now, get used to the idea and rent money the same way you would rent a car, boat, or summer cottage. Money is just another commodity, so use the money rental system to become financially independent.

One word of warning: never rent money just for the sake of having a few bucks in your jeans. You should rent money only when you have a definite and sound money-making plan where you can use some other person’s cash to build up your business.

About This Article starting-successful-canada This is an excerpt from the perennial best-selling book, Starting a Successful Business in Canada, now in its 18th edition as a kit with CD. The book provides practical, real-world information to help Canadians start and successfully operate their own business, from home or an office.

Find out more about the book and preview its content in our Web store.

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