"Debt" makes a lot of owners flinch, and "never borrow" sounds like wisdom. But it's too blunt. Used well, finance is fuel — it lets you seize an opportunity, buy the equipment that pays for itself, or smooth the cash gap that growth creates. Used badly, it's a trap that turns a wobble into a collapse. The skill isn't avoiding debt. It's telling the two apart.
The rough line: debt that funds something which will generate more than it costs — a machine that lifts capacity, stock for orders you can already see — can be a sound investment. Debt that funds losses, props up a broken model, or papers over a cash-flow problem you haven't fixed is usually just delaying and deepening the pain.
Before borrowing, the question isn't "can I get the money?" — lenders are often happy to oblige. It's "will this debt make the business stronger, and can I service it if things get tight?" If you can't answer both clearly, that's your answer.
Borrow like an investor, not a firefighter.
General education, not financial advice — your accountant and your specific numbers are the real guide here. Funding growth wisely is part of the Scale course.
Free first step: the free Business Stage Assessment.
Annie
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