Profit is an indicator of health, which shows whether sales are high enough to cover the costs incurred. A loan will not increase the profit. Of course, a loan will increase the cash. This means a loss-making company does not necessarily have a cash problem. As long as a company can borrow money, everyone who needs to be paid can be paid. However, finding a bank that is prepared to lend you money when you are making a loss is not easy.

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