by Danny Brown on February 13th, 2008
Although you might be surprised at the thought, there is such a thing as good debt. Despite the fact that all debt is normally associated with poor credit ratings and possible blacklisting – not to mention the potential loss of your company – you can actually sometimes use debt to your advantage. It just needs to be handled properly, and the best way to do that is to understand what constitutes good debt.
Good Debt
The simplest way to look at good debt is through how positive your company assets are. If you have assets that are making money for... Read more »
by Angie Mohr on January 14th, 2008
Debt. It’s the word many small business owners hate to hear. It’s a reality for most businesses to incur debt to finance operations, at least in the start up years. Although many small businesses are denied credit in the first few years, others have bankers and credit card companies begging for their business, especially those companies whose owners have substantial personal assets to attach.
I hear the following from small business owners every day:
"It doesn’t matter. I get to write it off."
"You can’t operate in this industry without a big line of credit."
"I need a corporate credit... Read more »
by Carrie Hinkel on December 5th, 2007
It takes more money to start a business than most entrepreneurs initially realize. This leads to increased debt and, for many, bankruptcy. In 2006, approximately 1.9 million American businesses filed for bankruptcy. For most companies, this is never a good option. It ruins your credit, makes it next to impossible to ever get another loan, and it may be difficult to gain back the trust of customers, clients and employees. But, don’t worry; there are plenty of good options for any debt-ridden business to keep afloat and start to manage their finances properly.
Common debt issues small businesses face:
Too... Read more »