Many businesses seeking financing for numerous reasons, other don’t even know the reasons, and others borrow for the wrong reasons.  When making a borrowing decision there are many things you need to take into consideration.  Here is a list of things you need to take into consideration:

• Is it a short-term reason or purpose?
• Is it a long-term reason or purpose?
• Can I achieve return on investment?
• I’m using this money to resolve a dilemma?
• I’m using this money to pay off bad debts?
• If I am expanding, how long will it take to see revenues from the expansion?
• Can I increase sales with this loan?
• Can I increase inventory and still make a profit with the cost of the funds?

These are just a few questions you need to address before borrowing money.  Funding to existing businesses who address the use of funds will allow businesses to obtain capital for the right reasons and not the wrong ones.