Borrowing does focus the mind.

Although it can become a worry if wanton and uncontrolled. Choose your lender carefully.

A lender does like to see;

• commitment from the entrepreneur
• and not only in terms of time and energy but perhaps pari passu with the cash introduced
• very regular reporting the business is on track
• and if not on track what the entrepreneur is going to action
   

The idea of being watched over does not suit some of our would be entrepreneurs, those with self-belief and those with direction and forcefulness. Humility needs to be in place.

Debt finance does allow the entrepreneur to keep 100% of his business, which is a huge attraction.

Most levels of debt finance these days need security, even the £10,000 bank overdraft.

So perhaps a way around this is to lease assets of plant that you may be purchasing. The kit out of your premises can be put on finance.

Leasing or renting such assets does not tie up precious working capital.

Remain flexible. Resist personal guarantees.