When a company is under pressure, offers of fast, easy money can be tempting. The trouble is that the quickest funding is often the most expensive, and borrowing to plug a hole you cannot yet see the bottom of can deepen difficulty rather than resolve it. A few questions help you judge well.
Questions to ask before taking on new finance
- Is this a timing problem that new funding genuinely bridges, or a deeper margin or demand problem that borrowing only delays?
- Can the company realistically meet the repayments out of expected cashflow, not best-case hopes?
- What is the true cost over the full term, including every fee, not just the headline?
- Who is the lender, and are their terms clear and fair?
Borrow into a plan, not a panic
Healthy borrowing supports a credible plan with a clear repayment route. Panic borrowing fills a gap today and creates a bigger one later. If you cannot see how the money will be repaid, that is a signal to take advice before signing anything.
If you already hold a Credicorp Flex or Credicorp Slice facility and are tempted to stack expensive new debt on top to keep up with it, pause and talk to us first. Restructuring what you have with us may be far healthier than adding a costly second commitment in a difficult month.
See also: Matching the borrowing to the need it funds, What not to do when your company cannot pay, How can a seasonal business manage the quiet months?.