The business loan is slowing down your business no matter what.
Earnest only takes their return once you're in the position to pay yourself a salary. If you reinvest everything in the business, they don't get anything.
Earnest only takes their return once you're in the position to pay yourself a salary. If you reinvest everything in the business, they don't get anything.
If you look at the repayment schedule in the model, you'll find that Earnest ends up being CHEAPER than 20-30% without the personal guarantees required by a bank:
https://docs.google.com/spreadsheets/d/1h_L7oa3rbV8P-ZnMM-l1...
A stream of cash flows that goes:
0: -150,000 1: 0 2: 0 3: 1,800 4: 14,400 5: 50,400 6: 97,200 7: 205,200 8: 81,000
The IRR/effective "interest rate" of this stream of cash flows is 18.3% - lower than the 20%-30% you're claiming.