Setting boundaries is necessary in any human relationship.

Whether you’re dealing with an overly demanding business client or a boyfriend with wandering hands, sometimes you just have to say “No!”

In fact, there are many parallels creating successful relationships with business clients and boyfriends.

For both, most problems can be avoided by laying down clear, straightforward boundaries.

In business arena setting boundaries is done by negotiations, written materials such as rate sheets and brochures, and most important, contracts.

Good relationships enjoy a certain amount of give-and-take and compromise. But when demands become unreasonable, it is time to say put your foot down.

That is because human relationships work best when they are conducted with mutual understanding and respect. Intelligent boundary setting goes a long way to set up a structure where mutual respect can flourish.

Good relationships are based on an even exchange. Generally, exchange is money for goods or services on part of you and your business client. For boy and girlfriends it will be a mutual emotional commitment.

A girl who gives her heart and soul to a boy who is looking for a ‘one-night stand’ is an example of someone who enters into an unequal exchange.

Is that situation really so different from a small business trying to break in with a large, high profile client who can pick and choose among many small vendors? It is not uncommon for some less than scrupulous large clients to seek out small hungry suppliers, give them orders large enough to monopolize their capacity, and demand all manner of concessions.

Debt Financing Debt financing means taking out a loan (money that is to be paid back over a certain period of time, usually with interest). Debt financing is either short term (the loan is to be repaid in less than a year) or long term (the loan is to be repaid in more than a year). Lending parties will also look closely at business's debt-to-equity-ratio.

When taking out a business loan, only obligation of business is to repay loan according to terms that were agreed upon. The lending party does not gain ownership in business.

Many lending institutions require owner(s) of smaller businesses to personally guarantee loan. In such a case, commercial loan becomes same as a personal loan.

If you are starting a home based business and are looking to take out a commercial loan, then you will be definitely be asked to personally guarantee loan.

Advantages of Debt Financing The biggest advantage of debt financing is that lending party does not gain any part of ownership of your business and your only obligation to lending party is to repay debt. Also, repayment of loan is typically a fixed expense, according terms of loan.

Dis-Advantages of Debt Financing The biggest dis-advantage is that business will not have all of its cash flow available to do business. Also, interest that is owed can be high.