The primary motive concerning any business is to earn maximum profit. Regulation DD: A regulation in the Truth in Savings Act, which basically requires disclosure of some important information pertaining to the deposit account of the consumer by the depository institutions, like banks, savings and loan associations, etc.
In your business, there are situations when you have to make huge purchases, by seeing the profit which you can earn by doing so. Using it to make these heavy purchases is more advisable because the amount involved may well surpass your credit card limit and also, the high interest rates charged will make it very difficult for you to repay.
There are many businesses who would never qualify for a traditional bank loan, regardless of how badly they need it or want it. If their credit scores are low, or if they are unable to provide the collateral the banks require their applications will be rejected.
From the points that have been stated above, you will understand that being in debt with no concrete plans of repayment is definitely not a very good situation to be in. The first and the foremost drawback of having a large number of debts is that the interest keeps on building up, thus increasing the amount of your debt.
The accurate and professionally compiled fiscal data, and subsequent analysis and rating, enables the entrepreneur, competitors, and lending institutions, to determine the amount of business that can be extended, the interest rates that can be applicable (in case of a loan), line of credit that can be extended, and the business’ position in the market.