Deep Dive into Debt Financing and Its Impact on Small Businesses

Abstract

This research article examines the impact of debt financing on the growth of small businesses. Debt financing is a common method used by small businesses to raise capital. However, it can come with risks, such as high interest rates and the potential for default. This article explores the advantages and disadvantages of debt financing and investigates how it affects the growth of small businesses. The study uses a combination of qualitative and quantitative research methods to analyze data from small businesses that have used debt financing. The findings suggest that debt financing can be an effective way for small businesses to raise capital and grow, but it requires careful planning and management. The article concludes with recommendations for small businesses considering debt financing.

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