Borrowing can accelerate a useful business change, but it also adds fixed obligations. The aim is to connect new capacity with enough cash generation to support those obligations.

Assess the cumulative effect of loans, leases and other commitments. A project that works in isolation may be harder to sustain alongside existing debt.

Revisit the balance as the business grows. Additional turnover is most valuable when margins, cash collection and operating capacity grow with it.

Key takeaways

  • Borrowing can accelerate a useful business change, but it also adds fixed obligations.
  • Assess the cumulative effect of loans, leases and other commitments.
  • Revisit the balance as the business grows.