Responses
Paying for the interest on a loan makes it the most expensive form of financing available.
Paying for the interest on a loan makes it the most expensive form of financing available.
Banks are usually unwilling to fund a business in its early stages of development.
Banks are usually unwilling to fund a business in its early stages of development.
Fluctuations in the currency exchange market can lead to ballooning interest payments.
Fluctuations in the currency exchange market can lead to ballooning interest payments.
Securing a loan involves a lot of paperwork and an extremely lengthy approval process.
1 answer
One common disadvantage of debt financing is:
Securing a loan involves a lot of paperwork and an extremely lengthy approval process.
This can complicate and delay access to necessary funds, especially for businesses that need rapid financing to seize opportunities or address immediate needs.
