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"A small loan of a million dollars"
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"A small loan of a million dollars"Posted:

002
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Normally I don't care about this crap, but why are people saying that's a ridiculous statement? You have to remember Trump is a business man, this was not a personal loan for a Lamborghini. Look at how much it costs to start a company, you need to buy the property, renovate / build a building, buy product, hire people, advertise, etc. 1 million dollars will not get you very far. Donald's father, Fred trump, had an estimated net worth in 1999 of $250-$300 million. 1 Million dollars would be a small loan. Take off the million part, you have $250-$300, $1 is a pretty small loan, isn't it? Donald trump has a net worth of $4 billion, so a million dollar loan is pretty small.

The following 3 users thanked 002 for this useful post:

GTT (12-03-2015), Fielding (12-03-2015), IPv6 (12-03-2015)
#2. Posted:
GTT
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To turn 1mil>4mil, that is massive...People just don`t understand.
#3. Posted:
Larph
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Not a bloody clue what you are on about here.

Donald trump's inheritance? I thought that but it couldn't be as that was something like 40 - 60 million.
#4. Posted:
Wak
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I'm sure you're talking about that time Trump made a speech and said something about taking a small loan of 1mil off his father. Yeah I agree it is a small loan for someone like him, but then again if 1mil was given to me or someone with around the same wealthiness as me, I'd see it as a massive amount of money and would be hesitant on what to do with it.
#5. Posted:
speed
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$1 million is a massive amount of money to loan an unestablished business.

Yes, starting a business is expensive, but a bank is not just going to say "oh you're starting a business, here's a million dollars." It doesn't work that way. The amount of money a bank is willing to loan a company is based on the assets of the company, net worth of the owners and shareholders. Most startups are worthless, and would be lucky to get a loan of more than a few thousand dollars.

You need to keep in mind the difference between a loan and an investment. A loan only requires interest to be paid over time. The amount you pay back is only a percentage of the initial loan, but the downside is that you're limited to how much money the bank will loan you.

That's where Series Funding comes into play. Instead of a loan that they must pay back over time, the owners of the company sell a percentage of the company to investors in return for a much larger amount of cash. The downside is that your business must already be fairly established to attract investors, which means the owners pay out of their own pocket until that happens. The other downside is that the shares that you sell to the investors will eventually be worth significantly more than the investment amount, which means less return for the owners.

So in the long run, a loan costs the owners significantly less money because they are only responsible for paying back the sum of the loan and the interest accrued, rather than giving away a portion of their company.

Trump received a loan of one million dollars, but was able to keep his entire company, which is now worth billions. He got a nice deal, one that most business owners aren't so lucky to receive.


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#6. Posted:
Guns
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For everyone who hasent seen this video here it is

#7. Posted:
Leviathan666
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Hopefully he can help the US debt haha . Looking forward to him being our president.
#8. Posted:
Xaldin
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Small is a relative term. A million is small to Trump as to where it is very large to the average person.
#9. Posted:
16
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The amount of views this got in two days o.o

Think of entrepreneur to average worker, a million is a lot to the average person.

As for trump and or his father were both relatively successful even if their way of doing so was terribly done it happened right?

In the end

To the average person one million is a lot to trump or his father, that would be a slap on the wrist and it makes perfect sense.
#10. Posted:
Ok
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trump is what makes america great, too be able too keep a business standing from 1mil is ridiculous, i had that much i would of blown it within a month or 2
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