Question
Long-term Liabilities Two close family friends, Ken and Cindy, started a business three years ago out of their kitchen making natural soaps and selling them
Long-term Liabilities Two close family friends, Ken and Cindy, started a business three years ago out of their kitchen making natural soaps and selling them to boutique businesses in resort areas. Their business has doubled in the past two years and they are considering taking out a $50,000 home equity loan to expand operations into nearby rented space. They also plan to buy some additional equipment to increase the number of soaps made per batch. They have asked your opinion about taking out this loan and they are both excited yet nervous about it. What are some things you would like to know about them and their business to help them with this decision?
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