Because buying a factory still needs to buy a lot of equipment and employees to operate, it will cost a lot of money in the early stage, maybe not just more than 20 million; Moreover, the loan is more than 20 million, and the later repayment is also a problem. We should consider whether the factory can earn so much money to repay the loan, so it is not appropriate to borrow so much money to open a factory.

It is no problem to have capital reserves for investment, but the loan of more than 20 million yuan is too large, which leads to great pressure on repayment in the later period. If the factory loses money instead of making profits, it will be more troublesome.