Fred started his new landscaping business with a commercial loan. He uses his credit card to pay for weekly supplies such as fertilizer and mulch. Business growth has been slow and fred is having a difficult time keeping up with his monthly loan and credit card payments. He is now considering borrowing against his home to stay current with his initial loan and for other needed expenses. Fred's business is most at risk because

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Fred's business is MOST at risk because "Fred is taking on too much debt".


Excessive debt represents various serious dangers to your business. While financing is a typical method to raise capital, a lot of obligation forces here and now and long haul money related weights on your business. Finding the correct harmony between obligation capital and value contributing is a center money related issue for any business.  

When you include high month to month primary and intrigue installments, acquiring enough income to make generous benefits turns out to be improbable. In addition, on the off chance that you can't settle debt rapidly, you convey it longer and pay more in enthusiasm after some time. Without benefit or subsidizing sources, you additionally can't extend or develop your business.

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