How to decide if you should borrow money for your business

02/24/2012 | CNBC

Before considering whether to borrow money for your business, you should think about whether your company is profitable and figure out your debt-service ratio, writes Brian Hamilton. This ratio compares your earnings with the amount of debt you would take on, and a value above 3 is a good sign. Then, you should consider whether borrowing money will allow your company to generate more profit, he writes.

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