Business Strategy
Should You Borrow Money to Grow Your Business?
Ask what the money buys
Financing that funds an asset with a measurable return is a different decision than financing that covers a shortfall. Be honest about which one you are doing, because the second one usually signals an operating issue that debt will amplify rather than solve.
Compare the cost of capital to the return
If the project's expected return comfortably exceeds the all-in cost of the financing, and you can service the payment through a slow period, borrowing can be a reasonable choice. If the margin is thin, phase the project instead.
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About the author
Sugar Yadav is a loan and business consultant based in Jacksonville, Florida, working with entrepreneurs and business owners across Northeast Florida. Credentials and professional background: [PLACEHOLDER — INFORMATION REQUIRED]. Read her full bio.
This article is educational and general in nature. It is not financial, legal or tax advice, and it does not guarantee any financing outcome. Lender criteria and program rules change; verify details for your situation.