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Borrow Money?
 

Hmmm, I am toying with the idea of borrowing Capital to invest in stock.

Or increase gradually by re-investing profits which would take longer to achieve my aims.

I don't like borrowing but it could be beneficial.

Has anyone borrowed a significant amount to expand their EBay Empire?

Re: Borrow Money?
 

Yes, borrowed £15K from RBS, payback over 2 years at 7% as well as a £10K overdraft...

I would recommend it as three months later I am not in overdraft and already have the money to pay back the borrowed capital plus little interest...

Re: Borrow Money?
 

I have used a £1500 (from my savings) in the past to buy items that I know will fly off the selves, but never borrowed money to invest in stock.

So long as you have a solid business plan though there is no harm in it

Make sure that you have enough stealth accounts to cover any shortfall is one gets banned.

Re: Borrow Money?
 

Forgot to add for the abovementioned loan, I had to prepare a business plan, cash flow forecast and profit/loss for each item.

As James said above, make sure it is an item you guarantee can sell and turn a good profit before you dive into something like this!

Re: Borrow Money?
 

I have borrowed but not what i would call a significant amount. Most is just reinvestment but event the best selling item has its day so it is all about careful research and not putting all your eggs in one basket. This should be one careful consideration about borrowing money plus what happens if your stealth accounts get taken down? A loss of income would not be good if you owe alot of money!

Re: Borrow Money?
 

Good advice ^^^

Also, about not putting all your eggs in one basket - look at selling on other platforms, I have only been selling on Amazon for 3 months, however, staring selling on there was the best thing I have ever done! I actually like it more than EB now!

Re: Borrow Money?
 

You say that now.... but AZ will change your mind eventually :mod:

I have a deep deep love/hate relationship with Amazon. Love the potential profit margins.... Hate their stupid review/seller performance system.

Re: Borrow Money?
 

Back in the early days of eB, when money orders were accepted, I was in university and did a sizable loan to get capital to buy collectibles and popular items from distributors in Canada and sell to USA, making a solid profit on the exchange rate (at the time $1 USD = 1.42-1.50 CAD). Had a credit line opened for about 45k.

Re: Borrow Money?
 

depends on your profit margin, as to whether a good idea. eg. if you are thinking to double your money each month, you cannot go wrong.