Tips Jun 21, 2022 13:09

About bank financing

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The papa (a male supporter) I’m close with apparently borrowed 1.5 billion yen from a bank through a corporate loan. Is that a normal thing when running a company?
👤 Asked by Guest 👩GenderFemale 🎂 20s 👑 Universe female member
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3 answers

紙ひこうき
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Mパパ、永遠の交際継続中! B1タイプ〜A寄りパパです! 会う度大人は嫌と感じる方………ご相談ください。
Age: Private 👨 Male Universe member
I wouldn’t be able to borrow 1.5 billion yen all at once either. Loans are perfectly normal, but 1.5 billion yen in a single transaction is a huge amount. You wouldn’t suddenly borrow that much out of nowhere, so it’s reasonable to assume that the person regularly borrows 1–2 billion yen at a time, has total debts approaching 10 billion yen, and assets of roughly the same scale. By the way, what’s the point of this question??
(3 replies left)
だて◎ゆめ
👨 Male Universe member
Even if I asked a bank to lend me 1.5 billion yen, they wouldn’t approve it (tears). I don’t think borrowing 1.5 billion yen is anything ordinary when it comes to running a company.
(3 replies left)
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It depends on the business model, but companies in the real estate industry tend to carry a lot of debt because, as Mac mentioned, the scale of their assets also plays a role. With business loans, the amount depends on the size of the business, so if they’re able to borrow that much, I’d assume it’s a fairly substantial company. That said, it’s perfectly normal for businesses to borrow working capital. Some companies operate entirely debt-free.
(3 replies left)