Taxes Vs Loans

Most small business owners have been 'brain washed" into thinking that getting a business loan is better than paying taxes  (the argument is that you could claim a tax deduction for the loan interest you are paying)

And the hope is that the investment you made in your business will silently appreciate.

A win win situation

I really think it is time we rethink this argument. 

Before you get a loan, check the total interest payment and also the cost of the loan including the prepayment penalties.  Divide this cost over the number of years you are planning to pay off this loan. You may be very surprised at the numbers you get.  Also do not forget the "peace of mind" factor :)

At times it will be cheaper to pay the taxes and avoid all the hassle and heart ache you may get with this additional long term obligation.

If you really pause to think, you are paying "taxes"  masquerading as "interest" to a bank.  You, the person who is actually earning this money did not get anything at all 

This is my personal opinion - please talk to you tax advisors and accountants before any decision.