This is a simple question - not a finance question or a question about a loan. It is a question about proper leverage. Do you think that you can (via research and understanding of your market) make more revenue than that revenue will cost? In other words, if you take a $100,000 loan with $5,000 a month in loan payments, can you make more than that $5,000 per month or the $100,000 loan by expanding? If so, as long as you do not have better options (options that will return more in revenue then your current plan to expand) - then it is a smart move. This is the purpose of business - can you use (deploy) your assets (a loan is an asset) in the most efficient manner to realize the greatest return possible?