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I am a great fan of bootstrapping, but there are some business models that just require cash more than others. Product-based businesses are an example.
Bootstrapping does not often give you the reserves quick enough to act on an opportunity. Before you consider borrowing I would urge you to possibly rethink your business model and/or the opportunity you want to go after. You can assess whether you can approach things in another way; a way that would allow you to fund what you need to do from your profits.
Furthermore if you are planning to borrow or look at some type of funding, I would suggest that doing it as a sole trader is not the best way to go. There are a host of reasons why you would be better trading as a Limited Company if that is the case.
And if you are going to borrow, please don’t do it to get out of financial problems as this could just make things a whole lot worse. The best reason to borrow is to improve or expand your business.
I don’t doubt that you are aware of most of the points I’m going to give you, but you will be surprised how you forget, or did not realise that something could have an effect on your application.
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