When Should a Small Business Borrow Money?
A good indicator that it is the right time for you to borrow money as a small business is that you have a vision and you’re comfortable and confident that an additional investment will generate new profits for you and increase your business growth in the short and long term.
This is important because it means that you’ll be able to comfortably repay the loan, and then enjoy all the revenue and profits of your investment.
For example, if you currently operate a restaurant and you need a loan so you can expand and open up a patio, and you know this will bring in extra revenue in the summer season, but it will also allow you to repay the loan and you’ll have the patio remaining for future seasons as well then, it’s likely a good investment and way to enjoy new profits.
