I recently started a small business, which I funded from my savings. So far the business is successful and growing. I am considering making a $50k loan from a bank, not because my business needs the money, but because I want to establish and strengthen my business credit and my relationship with the bank. I have sufficient collateral and can afford the payments. On a scale of 1 to 10 (10 being best), how
would you rate this credit strategy?
Realistically, it would be better that you increase your business and improve your income statement and balance sheet rather than pay interest on a loan you don't need.
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Realistically, it would be better that you increase your business and improve your income statement and balance sheet rather than pay interest on a loan you don't need.
