2 min read
When borrowing is healthy
Debt earns its keep when it bridges a timing gap (a tax bill, a big order) or funds a step that returns more than it costs. That is finance doing its job — see borrowing to grow.
When it is a warning sign
Borrowing to plug a recurring shortfall — where the business simply does not generate enough — masks a deeper margin or model problem. The fix there is the business, not more debt. Check the working-capital cycle.
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
Is business debt always risky?
All borrowing carries some risk, but well-judged debt that bridges timing or funds a good return is a normal, healthy tool. The risk lies in borrowing to cover losses.
How do I know if borrowing is right?
Ask what the money is for. Bridging a timing gap or funding a return that beats the cost is sound. Covering a persistent shortfall is not — fix the underlying issue first.
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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.