Having adequate funds is key to running a successful business. Cash is king. Experts have always stressed the importance of building company credit from the very beginning. But when it comes to debt, is there an ideal option? Should you avoid debt all together? Or apply for a personal loan or a business loan? A new study has provided some answers.

After analyzing data found in the Kauffman Firm Surveys Finance, professors Rebel Cole of Florida Atlantic University and Tatyana Sokolyk of Brock University in Ontario found that:

• Companies financed by personal debt actually performed worse than those with no debt at all.
• Companies that used business bank loans to finance their launch reported nearly twice as much revenue after three years as a startup of similar size that took on no debt.
• In addition, that same company financed by personal debt (e.g. home equity loan or personal credit

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