2 min read
When it makes sense
Launching a new line or division often needs upfront investment before it earns. If the opportunity is well-researched and the expected return beats the cost of finance, borrowing to fund it is a sound growth move. See should my business borrow to grow.
Managing the risk
Size the borrowing so a slow start does not sink the core business, and stage the investment where you can. Fund proven demand over hope, and keep repayments comfortable against your existing cash flow.
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
Should I borrow to expand into something new?
If the expansion has a credible, measurable return that beats the cost of finance, yes. If it is speculative, be cautious and size the borrowing so a slow start does not threaten the core.
How do I reduce the risk of a new venture?
Research the demand, stage the investment, and keep the borrowing sized so the core business is not endangered if the new part is slow to ramp up.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.