Polonius’s “neither a borrower nor a lender be” is not a rule for corporate finance. For a business, borrowing can make sense when it funds a defined opportunity, expected cash generation can justify its cost and risk, and repayments remain manageable. Taking on debt to cover a recurring cash-flow problem is a different proposition—and may deepen the weakness instead of fixing it.
That distinction is the central advice in an Irish Times Content Studio special report published on 2 October 2026. Its recommendations are attributed to practitioners, not a universal lending rule or a personalized financing recommendation.
Start with the purpose of the borrowing
Ask what the money will pay for and how that use is expected to benefit the business. A defined investment or growth opportunity can support a case for borrowing if the expected returns exceed the financing cost and associated risk. Debt is not justified simply because a lender is willing to offer it.
Enda Grenham, head of debt advisory at Goodbody, puts the emphasis on having a plan: “Debt works best when there is a clear plan for how the money will be used,” Darren Brennan, debt advisory in corporate finance at PwC Ireland, makes the return test explicit: “Borrowing makes sense when it funds growth that generates returns exceeding the cost of debt.”
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Distinguish growth funding from a cash-flow rescue
Borrowing to bridge the timing of a specific, temporary cash need is not the same as repeatedly borrowing to cover an operating shortfall. If a business has a recurring cash-flow problem, new debt can postpone a difficult diagnosis while adding repayments and costs. Mark O’Rourke, managing director of Bibby Financial Services, says: “If borrowing is being used to solve a recurring cash flow issue rather than fund a specific business objective, this is a cause for concern.”
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If the business cannot meet existing obligations, Brennan’s advice is to discuss restructuring rather than assume more borrowing is the answer: “If the borrowing rationale is that the business cannot meet its existing obligations, the conversation should be about restructuring, not new debt,”
Compare financing against the business need
The report names several possible forms of financing, but does not provide product terms or a formal product-by-product comparison. The appropriate mix depends on the company’s cash flows, objectives and future plans. Compare options by asking how each fits the particular need:
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| Financing form named in the report | Questions to assess fit |
|---|---|
| Traditional bank lending | Does the repayment schedule fit the timing and reliability of expected cash inflows? Can the business afford repayments if those inflows are delayed or lower than planned? |
| Revolving facilities and overdrafts | Is the need a short-term working-capital gap, and what flexibility and remaining headroom would be available? What happens if the balance stays drawn longer than expected? |
| Invoice financing | Are eligible receivables available, and do the terms suit the timing of customer payments and the business’s cash cycle? |
| Asset-based lending | Are suitable assets available as collateral, and can the business accept the related terms and risks? |
| State-backed funding | Is the business and intended use eligible under the relevant funding arrangement, and do its terms fit the business’s plans and repayment capacity? |
These are decision questions, not claims about the terms or availability of any particular product. The report does not specify rates, eligibility rules, collateral requirements or repayment structures for the financing forms it lists; those details must be checked for the lender, facility and jurisdiction under consideration.
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Plan debt capacity conservatively around cash flow, not the largest amount a lender might make available. Consider the reliability and timing of cash inflows alongside the amount and timing of repayments. Include room for unexpected events rather than assuming the opportunity will perform exactly as forecast.
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- Map expected cash receipts against the proposed repayment schedule.
- Assess whether repayments remain affordable if receipts arrive late or fall short.
- Account for the cost and risk of financing, as well as any collateral or eligible receivables or assets involved.
- Preserve headroom so the business retains operational and financial flexibility.
O’Rourke frames the aim as sustainable borrowing, not maximum leverage: “The objective should not be to maximise the amount of leverage available, but to establish a sustainable level of debt that preserves operational and financial flexibility.”
Start financing conversations early
Beginning discussions before funding is urgent can preserve more choices and negotiating strength. Early planning also gives the business time to compare financing forms against its expected cash flows and intended use, rather than accepting an option simply because obligations are already pressing. If current obligations cannot be met, the report’s advice is to raise restructuring—not just new borrowing—as part of the conversation.
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What the report establishes—and what it does not
The special report presents qualitative, attributed advice from named finance practitioners. It does not provide quantified findings, a universal debt-capacity formula, or terms for specific facilities. Its central test is therefore a decision framework: establish a clear purpose, weigh expected returns against cost and risk, check repayment capacity, and distinguish a fundable opportunity from a recurring operating deficit.
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