Raise company value with loans

Sounds like a clear contradiction for sure, but the reality is that your company is worth what you can get for it.

So if you can sell a company for 10 times earnings, then you in fact have sold your company with a 10% interest to the investor. The same thing goes with borrowing money for your business.

If you can get a loan at 10% annual interest then your company is essentially worth:
Earnings X 10 (multiple) = A company value.

Example:

You have earnings of $100,000 and this earnings is after having included cost of capital from the bank. Company value based on the cashflow method alone will be:

$100,000 X 10 = $1 million.