Yes, indeed, if a business tried to run on borrowed money costing 30% interest it would soon be history. I briefly experienced 27% in the late 1970s but fortunately was able to get clear of it within three weeks It was a very scary time.
Ever after I tried to run my business with only a small simple overdraft to cover monthly cash flow movements. Profit growth, as opposed to sales growth, allowed me to reach a stage when I never needed to use the overdraft. Natural unforced growth brought increased profits and allowed fantastic peace of mind and eventually comfortable retirement. Much easier to sell a small business showing real profits than a large one with high borrowings.
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