Good business practices suggests that a company should always take advantage of any and all credit facilities that they can obtain, subject, of course to getting them at a reasonable cost.

Many business people hate to be in debt, to owe any money at all, but debt is the foundation of Western economies and proper utilization of debt facilities can increase business earnings dramatically. One must remember that liabilities are only relative to assets and it is important in any business to utilize their assets to increase their business sales and hence profits. This doesn