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5 Proven Ways to Make Money Starting With Just a Small Loan

Far from a danger or sign of trouble, a strategically timed loan can be a boon to your profit margin.

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More often than not, loans are perceived negatively. The mention of debt is often accompanied by horror stories of bankruptcy and other theaters of financial distress. It’s no wonder, then, that people tend to consider loans as last-ditch efforts at paying for emergency expenses. But is this bad rep justified? After all, if a loan can save a dying business, and in turn, help secure a profit, it’s a savvy and often indispensable move. Of course, there are also instances in which borrowers are faced with not being able to pay off a loan, but as long as liabilities and forecasts are carefully planned, good debt can be a lifeline, and can be used additionally for investment organizing.

When you “leverage” debt to maximize a return on an investment, you are, put succinctly, using borrowings at a lower rate to fuel a return at a higher rate. Though there is a risk of losing capital, using debt to gain profit is an often underrated means of making money. Once you review your risk appetite and perhaps change preconceived notions regarding loans, it’s possible to turn debt into profit-making investment instruments.

Five relatively safe ideas to get you started:

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