By the end of this chapter, you should be able to:
• Explain the role of debt in the growth of a business.
• List and explain the criteria used to evaluate a credit application.
• Analyze bank loan pricing.
Neither a borrower nor a lender be;
For oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
This above all: to thine own self be true,
And it must follow, as the night to day,
Thou canst not then be false to any man.
—William Shakespeare, Hamlet: Act I, Scene 3
This quotation, among the most famous in literature, may have been useful advice in its day, ...