Why do business / companies need to borrow money? What are the ways they usually do to borrow?

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Memo123 Memo123

10-12-2014
Social Studies

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Why do business / companies need to borrow money? What are the ways they usually do to borrow?

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HolmesNWatson HolmesNWatson · Answer 1 · 2014-12-10T12:16:03-05:00

Businesses need to borrow money, often so that they are able to survive as a business. If a business needs to purchase a premises, there is a chance that they will take out a mortgage on it, which is a loan. They may also borrow money in order to keep surviving as a business. Businesses can borrow money from the bank, or from another larger organisation. If it is a smaller business, the business owner may borrow money from their smiley members. Hope this was able to help :)