Growth isn’t always good – Potential downsides of out-of-control growth

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Abstract: As the economy begins to recover from the difficult economic circumstances created by the COVID-19 pandemic, it’s tempting to assume that for businesses, all growth is good. But this isn’t necessarily the case. In fact, if borrowers are growing by leaps and bounds, lenders might want to look into that rapid growth further to make sure it’s based on a sustainable business model.