A larger loan can appear to offer flexibility, but unused borrowing may still carry costs. Start with a justified budget rather than the largest amount that might be available.

Separate essential expenditure from optional improvements. Phasing less urgent work may reduce repayment pressure while preserving the main project's purpose.

Review the combined effect of existing and proposed debt. A sound financing decision leaves enough capacity for ordinary costs and a less favourable trading period.

Key takeaways

  • A larger loan can appear to offer flexibility, but unused borrowing may still carry costs.
  • Separate essential expenditure from optional improvements.
  • Review the combined effect of existing and proposed debt.