Be credit worthy

Acquiring vast amounts of wealth may require using other people’s money. The people who originate big innovative ideas usually don’t have the required capital to scale their businesses. So they have to attract capital from other people. Typically they get equity or some kind of debt capital. To be able to do this one has to be credit worthy.

Being credit worthy means being able to pay back acquired capital with some reasonable return. If I get $1,000 from a friend to build a prototype of a product, I should be able pay it back with some interest.

Credit worthy people exhibit some common traits. They have some source of income or potential to earn income. They have collateral to back up their debts. They are substantially invested in the project. They have a track record of taking care of their investors. They always keep their word and never default on their obligations. They don’t play hide and seek with their creditors when their loans are due. They don’t misrepresent their financial standing to lure people into giving them money. They don’t gamble with borrowed funds. They are prudent with investor’s money. They have a reputation for doing the right thing. They are people of integrity.

Credit worthy people have no problem finding the necessary capital to grow their wealth. And this makes it worthwhile to be credit worthy 

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