rich people super rich are taking loans now why? what it means ?

[Ayiranorea]

Rich and super rich are made out of Businesses. Once after the well establishment of the business there'll be regular revenue. To keep up the revenue and to multiply the net worth of the business they go for loans. The entire loan amount won't be taken for the business upliftment, around 30% - 40% will be used for business while the rest gets invested. This is how the loans were used by the rich and super rich.

[Salauddin1994]

The reason why rich people take loans is because many business people including the government are affected by the epidemic and they take loans to increase their business and investment. The government is giving low interest loans to banks to improve the economy of their country so every business is taking loans to make a profit besides rich people are trying to take loans from banks by emphasizing on increasing revenue collection this year to alleviate the financial crisis due to low revenue collection.

[worldofcoins]

Rich and super rich are made out of Businesses. Once after the well establishment of the business there'll be regular revenue. To keep up the revenue and to multiply the net worth of the business they go for loans. The entire loan amount won't be taken for the business upliftment, around 30% - 40% will be used for business while the rest gets invested. This is how the loans were used by the rich and super rich.

Rich people can afford the loans since they already ha huge properties and money for collateral.
Even they lose their loans, and they still can bear it.
There's nothing special loan for rich people because many organizations realize they can restore high cash, and there will be no postponement of refunding.
The government should make a move against it and make a framework for helpless people, groups to go into business and make their life simple.

[jaysabi]

The reason why rich people take loans is because many business people including the government are affected by the epidemic and they take loans to increase their business and investment. The government is giving low interest loans to banks to improve the economy of their country so every business is taking loans to make a profit besides rich people are trying to take loans from banks by emphasizing on increasing revenue collection this year to alleviate the financial crisis due to low revenue collection.

Low interest rate loans are the biggest factor in loan activity. It's been over a decade since the interest rates have not been artificially super low. The economy is super leveraged because money has been essentially free to borrow (compared to historical norms).

[Fortify]

Unfortunately in times like this the rich are able to get much richer. They already have plenty of assets, so are able to use free cash flow or borrow money and buy while asset prices are depressed. While everyone else is getting rejected for bank loans, the richest are courted by financial institutions because they are the easiest type of customer. Stocks plunge during a crisis like this, but long term they will recover and are basically selling at bargain prices right now.

[goaldigger]

The reason why rich people take loans is because many business people including the government are affected by the epidemic and they take loans to increase their business and investment. The government is giving low interest loans to banks to improve the economy of their country so every business is taking loans to make a profit besides rich people are trying to take loans from banks by emphasizing on increasing revenue collection this year to alleviate the financial crisis due to low revenue collection.

Low interest rate loans are the biggest factor in loan activity. It's been over a decade since the interest rates have not been artificially super low. The economy is super leveraged because money has been essentially free to borrow (compared to historical norms).

Many banks offer a low interest rates for the loans and even our own central bank mandated the banks to make the interest lower so many can avail the loans during this pandemic, and many are taking advantage of this so they can survive and help the business to keep in operation despite of what happened.

Most of the Rich businessman already know where to put their money, so I’m sure they borrow funds so they can diversify and still make profit, loans are not bad at all and those collateral for sure they wont allow banks to get that easily.

[J.Amador]

Because in our situation what are we facing right now that's why rich people taking loans because I think their company is now bankrupt cause of the pandemic many company are closing and many people loss their job that's the main reason why rich are taking loans

[carter34]

Rich and super rich are made out of Businesses. Once after the well establishment of the business there'll be regular revenue. To keep up the revenue and to multiply the net worth of the business they go for loans. The entire loan amount won't be taken for the business upliftment, around 30% - 40% will be used for business while the rest gets invested. This is how the loans were used by the rich and super rich.

Also that they have seen that it is a better time now to invest than to wait because the corona pandemic has made eyes to go into cryptocurrency, so they can take loan to buy it cheap and expect bigger return in the future. They play the wise game with the knowledge of business they have. But some people that are poor are also doing cryptocurrency investment.

[coolcoinz]

Because in our situation what are we facing right now that's why rich people taking loans because I think their company is now bankrupt cause of the pandemic many company are closing and many people loss their job that's the main reason why rich are taking loans

This is not the only reason. Sure, if you own a restaurant or a cinema that got shut down by the government you have to get money from somewhere, so you take a loan, but if we're talking about very rich people, most of them have the resources to pay the bills for a few months. Taking a loan sometimes mean betting on the crisis to come. In a crisis the value of fiat money will drop and you can also expect interest rates to be lower, while physical goods will not go down in value.

[Casdinyard]

Because in our situation what are we facing right now that's why rich people taking loans because I think their company is now bankrupt cause of the pandemic many company are closing and many people loss their job that's the main reason why rich are taking loans

There are instances related in what you have mentioned but also, there are instances wherein rich people are making loans in order to be prepare or to have something to be used in order to generate profit. In what way? During this pandemic, many people have engaged to businesses involving needs related to protection from the virus. Many people invested because they saw the opportunity or earning huge profit from the situation. Some of them are hoarding things and eventually selling for a higher market price. It is cruel to think of such thing despite of the pandemic but that is really effective if your goal is to just be rich but ofcourse, it will kill your sympathy towards other in some cases.

[Yatsan]

Why is being an issue and becoming questionable? Rich people are also like ordinary type of people taking up loans for a purpose and that is maybe to start up funding essential things that he find to make him more profitable and he just maybe not having enough money so to sustain and fill out such flaws, taking up loans is their way to resolve the problem. Actually taking up loans are not new at all for businesses are doing it also borrowing money from banks to fund the business so they can make use of it as a capital or for maintenance purposes of the business branch. Loaning money is just another strategic way to start up a business so rich people can also do it like ordinary people do. There is no exception on taking up loans as long as you have the capacity to pay for it.

[Shasha80]

Many rich people borrow money from banks for the purpose of turning it into assets, so that it can avoid inflation and can be used to
generate more money. Because the rich think money is a tool, so money should be used to work, not we work to earn money. So the
rich to lend money are not necessarily affected by the pandemic, they may borrow money for business purposes.

[maydna]

Many rich people borrow money from banks for the purpose of turning it into assets, so that it can avoid inflation and can be used to
generate more money. Because the rich think money is a tool, so money should be used to work, not we work to earn money. So the
rich to lend money are not necessarily affected by the pandemic, they may borrow money for business purposes.

The rich people can pay the loan to the banks, but we don't have to follow them to invest or grow our business if we find it difficult to pay the money. Perhaps, rich people want to diversify or grow their business, so they need more money to prepare everything. The rich people know how to use the money to make more money, so they have the courage to borrow money from banks. Besides that, rich people usually already analyze how much they need the money and what they will use to work as their plan.

[Mauser]

Why is being an issue and becoming questionable? Rich people are also like ordinary type of people taking up loans for a purpose and that is maybe to start up funding essential things that he find to make him more profitable and he just maybe not having enough money so to sustain and fill out such flaws, taking up loans is their way to resolve the problem. Actually taking up loans are not new at all for businesses are doing it also borrowing money from banks to fund the business so they can make use of it as a capital or for maintenance purposes of the business branch. Loaning money is just another strategic way to start up a business so rich people can also do it like ordinary people do. There is no exception on taking up loans as long as you have the capacity to pay for it.

I think issue here is that people want to copy what rich people are doing. They probably think that if they do the same things rich people are doing than they will become rich themselves. The problem here is that I can't be compared that easily. The super rich people usually own large parts of companies and use their money differently to the average man. The usual borrower from a bank uses the funds to buy a house or a new car, whereas the super rich use the loans to invest.

[KnightElite]

For me there is misconception in our society where a lot of people debt is bad but for rich people it is opportunity especially for those people who have high financial intelligence wherein they can make money from debt. I know a lot of real estate investors wherein they keep taking loans from banks and then they keep buying properties like Donald Trump and Robert Kiyosaki. We should change our perception when it comes to debt because we can take loans and we can use it as capital in order to gain opportunities where in we can make profit from it.

[Stavri]

If i had a lot cash, i wouldn't spend them for something that would not bring me profit. (Except house and car) And i would prefer to take loans and pay periodically if i have a great deal from a bank. So i would be able to use the cash for something really profitable.

[iv4n]

"ultra-wealthy-pull-cash-from-mansions-to-buy-beaten-down-assets" Isn't this an answer on question from headline, they don't wish to spend their own money, they are taking loans for expending their empires! I would do the same, keep your money safe, take a loan for buying more and then return that loan slowly! As time is passing and when things get back to normal they will harvest the profit, in a year or 10 years it's not important, they have time (and money) to wait for that! It's how rich people get richer!

[Blue MoonFlower]

As far as I know, the richer the person, the higher the debts/loans are. And loans for them are just normal even back with the regular/normal time. They used to get loans to improve their businesses and much more needed loans now in pandemic time where everyone is affected, neither rich or poor. And its just an advantage for the rich and business owner individuals to get loans easily because of their status and reputations.