The interest rate offered by a SME for High Interest Payout (HIPO) loan seem to be very high. Is it worth the risk?

While High Interest Payout (HIPO) loans are deemed as a high-risk investment, there are risk mitigating factors that make such loans a viable investment option. Such factors include the existence of a personal guarantee to the loan, its relatively short tenor of 6 months and the existence of at least an operating track record of at least 2 years.

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