some of the reasons which small business owners should consider borrowing money are course hero

Reasons to Borrow Now

• 1. You Need Equipment or Inventory ...
• #2: You Want to Expand Deciding to expand can be an exciting part of any business’ journey. ...
• #3: The Potential Profit Outweighs the Investment Unfortunately, you probably don’t have a crystal ball tucked away inside one of your desk drawers. ...
• #4: You Receive a Large Tax Bill ...
• #5: You Can Refinance and Save Money

Full Answer

What are the reasons for a small business to borrow money?

54) Some of the reasons which small business owners should consider borrowing money are: A) gaining market share. B) refinancing existing debt. C) taking advantage of cash discounts.

Why do small businesses use debt financing instead of equity financing?

1) Sometimes small businesses have to use debt financing instead of equity financing. When they do, they discover that: A) banks give them a lower interest rate because of their closeness to the customer and better management practices.

Where can I borrow capital for my Small Business?

The local bank has been small business’ traditional source for borrowed capital—and still remains a viable option for those businesses that can meet their potentially strict criteria. Nevertheless, there are additional choices, which could make sense for your business, once you understand the landscape of potential loan options.

Is it better to borrow money or invest in working capital?

Whilst borrowing does provide businesses with an added expense, often using the investment can generate more money than it costs to borrow. With improved access to working capital businesses can take advantage of new opportunities as and when they arise.