The dangers of borrowing

Borrowing can be a bonanza if it helps create extra wealth, but…. A business loan can also be an effective debt trap. Borrowing is the easy bit. Money is the bait. Paying it back is the hard part. Businesses are lost a decade after borrowing, because a repayment strategy after you borrow is too late. The horse has bolted Types of farm loans This can happen as easily with a loan with a big 4 bank. It can happen with business tarter loans for succession or general business investment loans. It can happen with downturns and recovery loans.

Interest not the main factor

Tread very carefully. Interest is not the main factor in any business loan. A good business loan can easily turn into a difficult debt. Business owners know that as with a pig trap, it is easy to get into debt but there may be no way out.

Planning

Get your pay-back strategy in place BEFORE borrowing. Borrow Better helps small businesses plan their escape route before they borrow. Before you borrow contact  Borrow Better by GBAC, the small business loan consultant.