You should have a clear idea of why you need the funds. For example, do you want to consolidate debt at a lower rate, pay medical bills, or pay for a home repair or remodel project? Whatever it is, make sure you know exactly how much you need so you can borrow close to that amount.
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How do we raise cash? We can raise cash through borrowing (current debt), issuing bonds (long-term debt), and by issuing stock. Borrowing current debt: This is cash we receive when we borrow from the bank. We receive the cash in the current year, and are obligated to pay it back next year.
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