People who do not want to take loans in business development may not actually take the right steps or are afraid of taking loans but fear is a hindrance to any success. Either they have to use their capital to scale up the business or resort to debt. However before taking a loan he should have a broad understanding of all his business activities so that he does not face any threat in using the loan money. Because losing money is not a desirable event for anyone therefore one should always carry out the business activities consciously with great dedication.
Every businessman often takes out loans from banks for business capital and they generally already have asset reserves that can pay off debts if the business they have run does not reach the target, so my assumption is that loans do not always have a positive impact on business unless you have been involved in business before and You have a plan and strategy to develop your business.
I have discussed this with business people, they avoid using capital from selling assets and choose to take out loans from banks, but they have experience running their businesses so they can pay off debts in 3-5 years.