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Small businesses often need loans for growth, be it through hiring new staff, commercial advertising, or acquiring office space. Proper planning is essential; poorly assessed debt can strain cash flow and threaten business viability.
Corporate Debt
Corporates can access more diverse debt options, such as bonds and commercial paper. Bonds allow companies to repay investors over time, while commercial paper helps cover short-term liabilities. The risk of over-leveraging exists here too, as economic downturns can severely impact repayment capabilities.
Credit Card Debt
Credit cards represent unsecured debt and can become burdensome if not managed properly. They require meticulous attention to avoid overspending, high-interest rates, and negative impacts on credit ratings.