Good loans backed by good loan management can help your business produce higher profits.
Loans divert a portion of business revenue to the lender and that can pose a serious problem to profitability if for some reason revenue falls. A farm drought or economic downturn is an example.
A proper loan management plan will have catered to those possibilities because there is every chance they will arise once or more during the lifetime of any long term loan.
The loan management plan should be written before the loan contract is signed, rather than afterwards. That allows the contract to be tailored to the business not the bank.