𝐀 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐥𝐨𝐚𝐧 𝐢𝐬 𝐜𝐡𝐞𝐚𝐩𝐞𝐫 𝐭𝐡𝐚𝐧 𝐲𝐨𝐮𝐫 𝐨𝐰𝐧 𝐜𝐚𝐩𝐢𝐭𝐚𝐥

Yes, it may sound counterintuitive, but financially it makes sense.

As a business owner, you expect a higher return on your own investment, often 15–20%.
A lender, however, is satisfied with much less: the interest rate, maybe up to 10%.

By adding a loan, you have more capital available to grow your business.

And the advantage doesn’t stop there:
Interest on business loans is tax-deductible (when used for income-producing purposes), which lowers the real cost of borrowing even further.

Of course, always be aware of your solvability, it’s crucial to maintain financial health while leveraging debt.

At Noosa Business Advisory, we guide business owners in structuring capital efficiently, striking the right balance between equity and debt for sustainable growth.

Curious what I can do for you to strengthen your business?