I could purchase my car out right with cash, but since the interest rate was super low, there was no harm in financing it.
Similarly, if you can use someone else's money to grow your business, and the terms are quite favorable to you, why wouldn't you?
More likely in Peleton's case, they make profit, but it takes a lot of money to expand.
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I could purchase my car out right with cash, but since the interest rate was super low, there was no harm in financing it. Similarly, if you can use someone else's money to grow your business, and the terms are quite favorable to you, why wouldn't you?
More likely in Peleton's case, they make profit, but it takes a lot of money to expand.
Or possibly R&D costs.