2 min read
The decision that matters
Compare the expected return on the growth against your cost of capital. If a step earns clearly more than the finance costs, borrowing to fund it creates value. If the margin is thin or the demand uncertain, be cautious.
Why growth needs funding
Counter-intuitively, growth drains cash — more stock, more staff, more invoices to wait on. A short facility funds that gap so a real opportunity is not lost for want of timing. Read should my business borrow to grow.
What it means for you
Fund proven demand, not wishful thinking. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
When is borrowing to grow a mistake?
When the demand is uncertain, the margin is thin, or the return does not clearly beat the cost of finance. Borrowing amplifies both good and bad decisions.
How much should I borrow to grow?
Enough to fund the specific, proven step, sized so repayments stay comfortable even if the growth is slower than hoped. Avoid borrowing against optimistic forecasts.
Related reading
How do I fund a large new order?
A big order is good news that can strain cash, because you often pay for stock, materials or labour before…
Read →
Should I use company savings or borrow?
Borrowing is not always the second-best option — keeping a cash buffer intact has real value, and the cost of…
Read →
How do I fund hiring more staff?
New staff cost money before they generate it, so funding the ramp-up period bridges the gap between the wage…
Read →
A supplier offered a discount for paying early — should I borrow to take it?
An early-payment discount is often worth borrowing for, because the annualised saving usually beats…
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.