While poor management is the most frequently cited reason businesses fail, inadequate or ill-timed financing is a close second. Whether you're starting a business or expanding one, you will need ready access to cash at all times, and you will need to manage that cash well.

In order to avoid common mistakes in borrowing money (such as securing the wrong type of financing, miscalculating the amount required, or underestimating the cost of borrowing money), it's important to manage your existing funds wisely. This fact sheet explores what considerations to take into account before seeking financing, the types of financing available, and criteria commercial lenders use to assess a loan application.