When is it advisable to request a grace period on a loan and what risk does it carry?

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It is advisable when the investment takes time to generate cash flow, for example, machinery or commercial expansion. The risk is that the future instalment rises or becomes concentrated, and you can “buy” yourself a problem in 12 or 24 months, which is why you need to simulate the year without a grace period and with a grace period, and see whether the business can sustain it equally.

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