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Taking a business loan can provide essential capital for growth, allowing businesses to invest in equipment, inventory, or expansion without diluting ownership. However, it also comes with risks, such as the obligation to repay the loan with interest, which can strain cash flow, particularly if the business does not generate expected revenue. Additionally, taking on debt can affect credit ratings and limit future borrowing capacity. Careful consideration of the terms and the business's financial health is crucial before proceeding.
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