Risk - Selling shares mean owners may lose control, or cash flow problems may result from meeting loan repayments
Cost - Cost of borrowing varies across different sources
Availability - Some sources such as loans or share capital might not be accessible
Questions to ask before deciding:
1. Is it a short-term or long-term requirement?
2. How much finance is required?
3. If we borrow it how much will it cost to pay back? (interest rates %)
4. What sources are available to our business?
5. What level of debt can we manage?
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