When you run a business, you actually have to acquire credit facilities. These can be from bank or other financing institutions. This is the way for the people who have limited capital and still want to start a venture. And if it runs well, then they can consolidate the loans taken. This is true that at the end you have to repay the loan. There are numerous cases where we find people starting small with some loan taken. Later they may really make it a big one.
Some people might go a bit forward and even think of keeping their assets as mortgage. This way they raise some more capital and flourish their venture. In the period of recession, people found it very difficult to get suitable loans. Now the situation has changed to somewhat better. At least the banks concerned, raise less questions to a credit worthy entrepreneurs now.
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