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For an established business or a growing one, having a manageable debt can be viewed as good. I've seen many who carry on their businesses without any debt but there is nothing wrong with getting a loan to start or expand a business. For a business to thrive it'll most of the time require capital and so you should not shy away from approaching a bank or a friend for a loan. The thought of owing someone money sends chills down the spines of most of us and the fear is understandable. Some of us have had ugly experiences emanating from being unable to pay back money we borrowed from financial institutions or friends to invest in our business. This has resulted to loss of assets like furniture, vehicles and houses. As much getting a loan is risky, nobody makes money without investing time and of course money. Using other people's resources like time and money still remains the best available method of generating wealth, for there is no one who is an island. But borrowing money to invest in a business must be approached cautiously and wisely. Therefore when a business owner is taking a loan he/she needs to consult and research on financial management capability of the business. Small businesses should realize that once a loan is repaid, it goes a long way to improve the credit worthiness of their company and in turn enhances access to other types of financial facilities like overdrafts. In summary, caution and tact must be considered when borrowing money to start up a business or improve an existing business.
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