One significant advantage for a business receiving a loan is the ability to access immediate capital, which can be used for expansion, purchasing new equipment, or managing operational expenses, ultimately propelling growth and increasing profitability. However, a notable disadvantage is the obligation to repay the loan with interest, which can strain the company's cash flow, especially if the anticipated returns on the loan are not realized, leading to potential financial instability.
80 word minimum
In one to two sentences, describe one advantage and one disadvantage for a business when it receives a loan.
1 answer