2 min read
Sound reasons to borrow
Bridging a timing gap (a VAT bill, an order you pay to deliver before being paid), funding equipment or well-judged growth that returns more than it costs — these are finance doing its job.
The reason to avoid
Borrowing to cover a recurring shortfall, where the business simply does not generate enough, masks a deeper problem. Fix the margin or model first. See is it bad to borrow.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
What is the best reason to borrow?
To bridge a timing gap or fund a return that clearly beats the cost of finance. Those are what short-term business finance is designed for.
When is borrowing a bad idea?
When it plugs a persistent shortfall rather than bridging timing or funding a return. That masks an underlying problem the borrowing will not fix.
Related reading
Is it bad to borrow for my business?
Borrowing is not inherently bad — used to bridge timing or fund a return that beats its cost, debt is a…
Read →
Should my business borrow to grow?
Borrowing to grow makes sense when the return the growth generates comfortably exceeds the cost of the…
Read →
When is the right time to borrow for my business?
The best time to borrow is before you need to, while trading is strong and the numbers look their best —…
Read →
What is a good reason to refinance business debt?
Refinance to cut the rate, consolidate expensive debt, or free cash flow with genuinely better terms — not…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.