Why debt isn’t always bad
Taking on debt may make you feel worried, but while debts are often viewed negatively, they can actually have many benefits for the future of your business.
Debt can help manage cash flow and can also help you achieve your long-term goals.
Benefits of business debt
- Allows for effective credit control
- Helps manage cashflow
- Assists move towards long-term goals.
Loans
Having a business can be expensive, so looking for external funding should be considered as it can play an important role in leading to growth.
A business loan should be considered as often it will have a low-interest rate in comparison to other funding options such as credit cards, and finance companies.
Loans can be used for a variety of business needs such as purchasing equipment, refurbishing your premises, or raising cash flow.
Debt financing
Debt financing is often useful for small or new companies, who often use debt financing to buy resources that will facilitate growth.
It occurs when a company raises money by selling debt instruments, this is often in the form of bank loans or bonds.
Due to taking on additional debt, the company will be responsible for paying back the loan with interest.
Many strong businesses which have continuous sales and high levels of profit will rely on debt financing.
Do you need advice on related matters? Contact us today.
Social
Recent Posts
- Steps for employers to remain compliant with National Minimum Wage increases
- Simple ways to invest in your team this Career Development Month
- Simple ways to invest in your team this Career Development Month
- Double cab pickups to be taxed as company cars as Government confirms U-turn
- How to ease the pressure within your business this Stress Awareness Day
Archives
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
Categories
- Accountancy
- Accounting
- Agriculture
- Apprentices
- Asset and Wealth Management
- Ben Allen
- Blog
- Blogs
- Bookkeeping
- Brexit
- Budget
- Business
- Business Advice
- Business Advice News
- Business Blog
- Business News
- Business Start-ups
- Capital Allowances
- Cash Flow
- Cash flow management
- Charities
- Corporate Tax
- Corporation Tax
- Covid-19 Home working and expenses
- Economy
- Employees
- Employment
- Employment and payroll
- Family Businesses
- Finance
- Financial News
- Financial Planning
- Fraud
- Funding
- Government Funding
- Grants
- Guide
- HMRC
- Home working and expenses
- Income Tax
- Inflation
- Inflation / Interest Rates
- Inheritance
- Insurance
- Investment
- Latest Business News
- Latest News
- Legal
- leisure and hospitality
- Loans
- Making Tax Digital
- Money
- MTD
- News
- PAYE
- Payroll
- Pension
- Pensions
- Personal Tax
- Personal taxes and finances
- Property
- Property News
- R&D
- Redundancy
- Scam
- Self Assessment
- Self Employed
- SME
- SMEs
- SMEs / Business
- Start ups
- Tax
- Tax Blog
- Tax News
- Tax Planning
- Tourism
- Uncategorized
- VAT
- VAT and MTD
- VAT deferral
- Wages
- Wealth Management