While credits can be beneficial, they also come with risks:
Debt Accumulation: Excessive use of credit can lead to high levels of debt, making it difficult to manage repayments. Interest Costs: Credit usually comes with interest, which can add up over time and increase the cost of borrowing. Credit Score Impact: Mismanagement of credit can negatively impact a business’s credit score, affecting future borrowing ability. Cash Flow Issues: Relying too heavily on credit can lead to cash flow problems if revenues do not meet expectations.