Some entrepreneurs think that the only goal of borrowing is to get approved or just to have some form of financing they can use. But it’s bigger than that. It’s actually common for businesses to grow and then to need additional capital to bring themselves to the next level. It’s also common for things like debt and credit mistakes do stop them from qualifying for any additional capital.
Here are the four biggest dangers of borrowing money the wrong way when building a business:
1. Allowing Lenders to Take Too Much Collateral With a Loan
2. Not Being Committed to Maintaining (or Improving) Your Personal Credit
3. Not Knowing the Impact of Your Loan on Your Budget and Cash Flow
4. Choosing the Wrong Loan for Your Purpose
For detail in learning more about borrowing the right money for the right reasons, go to www.comcapfinancialgroup.com and complete the contact information.
5. Credit and Financing Mistakes That Will Hurt Your Small Business
These are the five biggest mistakes we’ve seen since the onset of the credit crisis in 2008:
1. Using Personal Credit Cards for Your Business
2. Using Borrowed Funds the Wrong Way
3. Pledging Excessive Collateral with your First Loan or Line of Credit
4. Doing Your Own Research and Getting It Wrong (Contact Commercial Loan Broker)
5. Not Treating Your Personal Credit as the Asset it is (or Not Making it an Asset)