When to payback SBA loan

I’m a big fan of paying any sort of debt you can.

 

One less bill to worry about. Make it easy on yourself and pay off.

 

Why would interest rates going up make your loan cheaper to repay?

Pay it off ASAP that way you're not at risk of default, then start building up your retained earnings.

 

The theory is when the inflation rate goes up higher than the interest rate, you’re paying it back with inflated dollars.

 

I’m still waiting on a bill. They said repayment would start in June, I believe. Haven’t heard a thing.

 

I'm going to go with pay it off as agreed. So, keep making the payments. However, create a "Sinking Fund" -a fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a depreciating asset. you will have the best of both worlds- Protection from inflation and cash on hand to pay it off if somehow printing 4 trillion bucks doesn't cause inflation.

 

Have they sent you an actual bill yet?

 

It was 77fib77 that was asking the original question and the above is what I would do.

 

Yes, mathematically you could make a case for postponing the payments as long as you can, using the cash flow to invest, for example, and “make money”.

It sounds really smart, sophisticated and business savvy, right? Thing is, you are talking about pennies, maybe a few nickels and dimes.

In reality, you are in the trucking business. With time and energy it takes to do all these “high finance” gyrations, you could have landed a new customer that nets you ten, maybe even a hundred times more than the few lousy dollars you “save” on the loan scheme.

Plus, when it’s paid off, you’ll sleep better, promise.