Definition

Monitoring spending to keep expenses within budget. Careful control makes sure that money is available for important needs.

What to consider

  • Compare interest rates and terms before borrowing.
  • Ensure repayment schedules align with cash flow.
  • Consider the long-term impact on your business.

Real world scenarios

  • Mark secured a bank loan to purchase new equipment for his expanding workshop.
  • A local restaurant obtained a business loan to renovate its dining area.
  • A startup used a business loan to cover initial operating costs during its first year.

Related terms

Entrepreneurial Finances