How mortgages can help Your business
Mortgages can be a very usefull tool for any business when used correctly. Companies as large as BnT even use them, according to some sources.
Using mortgages can help skyrocket your business, easily even, whether you are a big corporation or a individual looking to sell her/his own creations.
Before i go into detail, i see where SLIB also could have benefitted GREATLY in the early days by using mortgages. Infact tho, SLIB lucked with one buyer backing out from buying the parcel at Ranthambore. During the day i acquired that parcel, it was around HALF of the real estate holdings SLIB had (total of just under 8k sqm), and 1/3rd of all assets. In the end, it was lucky i acquired it and buyer backed out. However, with mortgage on it, i could’ve kept using the unused assets on making real estate deals and grow SLIB quicker.
So let’s see how a mortgage can help Your business!
Let’s assume you sell items created by yourself: Jewellery, Clothing and Club accessories. You have total of 60 items already, and you have listed them to SLExchange and SLBoutique, and rent on store already. All items are higher quality, and well done.
You are currently generating a total of only 5,000L$, which is quite low considering the amount of items and their quality. However, your advertising budget is very limited due to the low amount of sales, and you don’t have more than basic enhancements on 10 of your best items on SLExchange. That 5,000L$ monthly is profit, and you currently posses 27,000L$ total. In overall, you’ve made in the last 6months 37,000L$ only for your 120-240hours of work and you think you can’t make money in SL which would make RL sense (COMPLETELY WRONG ATTITUDE!).
At this point you read this article and see an opportunity for growth and proper income!
Month 7:
You come to me, and get 4 mainland parcels of 512sqm under mortgage.
Each 512sqm costs 3600L$, downpayment: 252L$ each, and total of JUST 1,008L$.
Mortgaged total amount is: 13,392L$ after downpayment, and you settle for 26 weeks repay, or other words approx 6 months, which you know you can easily cover!
Total to pay back is: 19,773L$ + tiers of 482L$ weekly (whole saler priced BUT with VAT 22%)
Thus weekly payments are: 1,243L$ and total costs of mortgage (Land + Interest + Tiers) is 32,318L$
If you’d directly buy these you’d pay Premium + 15USD/Month in tiers alone, Premium minimum is 6USD per month, thus 21USD total: 1329.18L$ per week!
With that total cost of land for first 6 months would come to: 48,959L$ ! So INFACT you are SAVING MONEY by mortgaging: 16,641L$ on the first 6months!
You also make 50L$ classifieds for each store, buy wonderchair and setup on each shop 2 wonderchairs giving some of your lower tier (cheaper, and probably lower quality, these were made during when you were still mainly “just” learning and “messing around”), and some freebie items, and sometimes giving also items.
Classifieds cost: -200L$ per week
Wonderchairs purchase: -700L$
Wonderchairs L$ given to people: -200L$ per week.
New sales weekly per store: 1,000L$
Mortgage costs per week: -1,243L$
Profit new stores: +2,357L$ weekly. (Wonderchair purchase not included because it’s one time cost)
Profit full month new stores: +10,213.67L$ (Adjusted by weekly * 52 then divided by 12 to get exact weekly)
Bottomline: 35,506L$ (Rounded to full lindens)
WOW! You have already increased your POSITIVE CASH FLOW many times over!
Month 8:
This month, you didn’t expand really, just put better ads on SL Boutique & SL Exchange, and links to those from your stores. Thus income from these increased, and new residual revenue is 9,000L$ monthly from them. Still very low, but you still have only basic listing enhancements on some of your products.
Bottomline: 54,720L$
Wow! now you are starting to get somewhere!
Month 9:
You get a new mortgage for an 2048sqm, a bigger nicer store. Same terms as the above 4×512sqm(2048sqm total)
For this you put also an classified of 500L$ weekly.
You spent on decorative items 5,000L$ and put a total of 12 wonderchairs with higher amount of L$ payments, and you are being optimistic about this! You also get an campaign at Mainostaulu of 8,000L$ for long-term.
and guess what? Bigger stores, tend to make bigger relatively too!
New Mortgage down: -1,008L$
New Mortgage Weekly: -1,243L$
New Classified Weekly: -500L$
New Store Decoration: -5,000L$
Mainostaulu Campaign: -8,000L$
Wonderchair L$ weekly given: -700L$
One time costs: -14,008L$
New weekly costs: -2,443L$
New sales weekly: 6,000L$
Bottomline weekly effect: 3,557L$
Bottomline monthly effect: 15,413.67L$
Bottomline: 75,340L$
Month 10:
Nothing new much this month, except mainostaulu campaign really is starting to kickin, and SLX sales are increasing as you are getting more popular.
Increased SLX & SLBoutique sales, are now total 11,000L$ monthly.
Your latest store revenue increased by 1,000L$ to a total of 7,000L$.
Those 4 small stores are still raking in the same 10,213.67L$ monthly
Total Monthly Profit: 28,214L$
It’s starting be usefull amount, yes? 
Don’t forget you’ve been paying of your debts constantly during this time!
At this point the 4 small stores has been paid 4/6months already, and of the big store 2/6.
Leaving your debt for the 4 small stores to: ~6,591L$
Debt of the bigger store: ~13,182L$
Total debt: 19,773L$
Total land value: 28,800L$
Properties equity: 9,027L$
Cash at end of the month: 103,554L$
Total Bottomline (Cash + Properties): 112,581L$
That’s starting to be some meaningfull money little by little! After this, just keep on doing this, going slowly to larger and larger, and more and more items, and more and more marketing, until you reach very big sums of profit monthly!
This is how mortgages can help you, it lifts of the fear “What if my items doesn’t sell enough?” etc.
In the end, if you do not sell enough, at one point, the mortgage gets defaulted, and the likelyhood is that you aren’t left owning any money to the bank. Downpayment + repaying the debt takes care of that, INFACT, you might even receive money on mortgage defaulting.
So how about You contact me in-world (IM Tyrian Camilo), and You let me help grow Your business?