Line Of Credit Explained (How To Utilize it Correctly)

hello everybody thank y'all for watching in this video i'm going to explain what a line of credit is and how i use it to make money so now let's get started so i decided to make this video because i feel like a lot of people who do business do not know what a line of credit is or they tend to overlook this financial tool that is offered by the banks a line of credit is a flexible loan that is provided by the bank that can be accessed when needed and paid back over time this is great for people who do deals that involve cash and they don't know when or how much cash they will need at any given time when you get a lot of credit from the bank you basically tell the bank like hey i want to have access to this lump sum of cash i only want to be charged interest on the cash that i use and on the time span that i use that cash now let's say you have a 5 000 line of credit that you got approved for if you need to use a thousand dollars you can go to the bank and say hey i want to withdraw a thousand dollars out of my line of credit they will give you that thousand dollars cash then every day it will occur interest until you pay back that thousand dollars now let's say the interest is 10 percent on that line of credit i would then pay 27 per day to borrow that thousand dollars because thousand dollars 10 percent of that is 100 we divide that by 365 days in a year you get 27 cents your interest will be 27 on that thousand dollars and it will occur daily so a business person like myself will go to the bank get a thousand dollars and the interest is 27 per day and over 30 days that's eight dollars for 30 days interest i can take that thousand dollars and probably make fifteen hundred to two thousand dollars paid him back one thousand and eight dollars that's the interest and the principle i borrowed and keep the extra profits for myself that is how you leverage or utilize line and credits to make money a lot of credit differs from a credit card and a personal loan because with the credit card they are not cash friendly anybody who does business know that credit cards them cash advance fees will kill you and the extra extra high interest on cash advances will kill you if you're doing cash deals credit cards are not your friend with a personal loan dollars are great but the problem is the bank gives you all the money up front and you have to pay back interest on that money until you pay them everything back and every time you need to use a personal loan you have to apply for a new loan you pay them back apply for new loan pay them back that is not a good way to have access to cash so as long as you are making more money than the interest that is occurring on a line of credit as you use it then you are doing good that is the main goal borrow the money flip it and pay them back and do it over and over again keep your emergency fund in the bank keep your savings account in the bank keep your investments invested and use the line of credit for money making opportunities that might arise and that wraps up the video for today on the line of credit and how to utilize it to make money we're using other people money to run up that bag never use your own money use credit correctly and hit that like button and that subscribe button but yes i hope you guys learned a thing or two from this video and if you have any questions comment them down below if you want to add anything to this video comment down below educate everybody and i'm going to see y'all at my next video peace