Should I borrow to hire staff? — Answers

2 min read

Role pays backThe test

Fixed costWages are ongoing

Timing gapPlan for it

When it makes sense

Hiring is worth financing when the role clearly adds capacity or revenue that exceeds its full cost — salary, employer costs, onboarding — within a reasonable payback. A salesperson who brings in more than they cost, or a hire that unlocks work you're turning away, pays back. Sense-check the revenue per employee the role needs to justify itself.

The timing to plan

Wages are a fixed cost that lands from day one, while the revenue a hire generates usually lags. That gap is where borrowing helps — bridging the ramp-up until the role pays for itself. A facility suits this better than a fixed loan, because you draw during the gap and repay as the return builds. Model it in a cash-flow forecast.

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

How do I know if a hire will pay off?

Estimate the revenue or capacity the role adds against its full cost, and how long until it breaks even. If the payback is clear and within a sensible period, it's a sound investment. If it relies on optimistic assumptions, be cautious.

What finance suits funding a new hire?

Because the wage cost precedes the return, a revolving facility you draw during the ramp-up and repay as revenue builds usually fits better than a lump-sum loan. It matches the finance to the timing gap.