“I still haven’t borrowed one cent from the bank and there’s not a lot of businesses like that,” she says. Ha thinks bank loans aren’t a safe business practice because she can’t prove how much income she’ll make.
“My approach is that you can’t predict sales,” she says. “That’s the problem with a lot of businesses. They go to the bank to borrow $40–50k based on their own predictions. But who decides that? It’s not the owner – it’s the customers.”
Ha avoids borrowing by only buying what she can afford and avoiding frivolous or spur-of-the-moment business purchases.
“When I started, I had $20,000 in my bank but I would only spend it very wisely. I’m still very cautious about spending money.”
While Ha consciously decides not to take on debt, loans can be a viable option for those who carefully assess whether borrowed money can be paid back on time and put to good use.