One of the biggest hurdles that a small business owner faces is a lack of working capital. Between the money needed for overhead, payroll, and all other costs associated with running a business, they may lack funds for improvements, renovations, or covering emergency expenses.
For the vast majority of small businesses, this is where a loan comes in.
Using debt to finance your business needs is a common tactic—much more common than relying on venture capital, for example—though it’s always a risky proposition. You need to crunch the numbers and make sure you’ll have the revenue to pay off your loan on time.