03-07-2021Quote:
Remember the amount borrowed in 2010? Yeah. That's a line of credit and it's paid off.
Check written. As in "still available".
Then the jets sell.
Check repaid.
Why is this so hard guys?
The rest of of your arguments are emotional and fear driven.
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This is ridiculous.Originally Posted by FLYLOW22
Why is it logical that BRK needs to write checks in order for NJA to grow after fleet replacement is complete?Remember the amount borrowed in 2010? Yeah. That's a line of credit and it's paid off.
Check written. As in "still available".
Then the jets sell.
Check repaid.
Why is this so hard guys?
The rest of of your arguments are emotional and fear driven.
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NetJets received a loan.
BH's 10K reported that we paid 38 million in guarantee fees in 2010.
A line of credit is a revolving account and is not in any way applicable for the financial needs of the NetJets c2009.
Sign up for the Hyatt Legal Plan and call a lawyer that will explain Parent - Subsidiary Loans.
Once you are issued the loan, paying off any portion of it does not somehow magically give you access to borrowing some or any of it's value again.
Parent companies are required to charge interest to the subsidiary and must do so at arm's length, otherwise they run the risk of a court ruling that the subsidiary is an instrumentality of the parent corporation which could trigger a fraud investigation.
The idea that Berkshire Hathaway, one of the most financially successful companies in the world, would do anything to jeopardize its Corporate Veil for the marginal benefit of a middling subsidiary is the stuff that makes professionals that don't wear short sleeve button down shirts fall over laughing.
Create your business entity (LLC, S Corp, C Corp, Sole Proprietor, Partnership), run your restaurants, use a line of credit to cover your monthly expenses that is secured by your accounts receivable. Take a loan against against the business assets (or take on investors / issue debt) to reinvest and grow your business through new space/equipment. Write off the depreciation of your new equipment (probably straight-line). Turn a profit, pay yourself (salary, dividends, owner's draw, GP) - repeat ad infinitum.
Do not think that your knowledge of running small businesses prepares you for the incredible legal and financial complexity of the corporate world.
Get a Master's Degree in Business, get a Juris Doctorate.
Better yet, pay someone (or get Hyatt) who knows what they are talking about to advise you.
Stop acting like a weekend warrior in a 152 who plays Microsoft Flight Simulator and thinks they can fly an A380 into JFK and do a CAT III approach.
