What is an acceptable level of borrowing?

While borrowing is fundamental to finance, experts counsel care in the current economic environment

In a high interest rate environment thinking about risk is vital — the results of taking on too much debt are well documented in Ireland.

Although Polonius may have been speaking wisely when he advised, in Shakespeare’s Hamlet, “Neither a borrower nor a lender be,” he was talking about borrowing among friends. When it is strictly business, certain situations warrant ignoring the advice of the king’s chief counsellor, there being much to recommend borrowing and lending.

However, in a high interest rate environment, caution should be exercised by business owners when taking on debt.