First of all, here is a very important truth: Borrowing Money Is Not A Cure All.
Simply borrowing more money to support your business operations may seem like a solution to your money problems. However, borrowing more money could make the problem worse.

Borrowing money seems like the right thing to do for two reasons: it relieves the immediate pressure and it allows things to continue as normal. We all wish things could remain the same, but maybe it is time for a change. Before borrowing money or bringing in investors, stop and ask yourself this question:

What is the real business problem or issue that needs to be resolved? Do I really need to borrow money? Is there some other problem that needs to be resolved?

Answering this question will lead you to finding the root cause of your need for cash. Borrowing money to support your operation based upon a flawed business model is only delaying the inevitable. There can only be one of three results:

Your bank will foreclose when they feel your ability to repay the loan is at risk.
You feel increased pressure to repay the debt or keep investors happy.

When investors become impatient with your lack of performance and feel you are unable to turn things around, you will no longer be able to raise additional funds to support your operations. It is only a matter time before you have to close the doors.

If your business model lacks an adequate level of customer adoption — that is the problem you have to resolve. If you cannot correct this fundamental problem, no amount of money will be enough. You are better off closing doors sooner than later.

Understand Your Banker’s and Investors’ Mindset!

At times it might seem like your only job is to keep investors and the bank happy. While it is your responsibility to communicate with them and answer their questions, do not let them run your business. Remember:

They have to to make a profit. They invested money in your company believing that it would be profitable.

They do not like risk. All banks and financial institutions are risk averse. They will not risk their capital. The moment they feel their money is at risk they will begin to evaluate their options.

Banks/investors are keeping an eye on your financial position. Specifically, an improvement in your financial position.