GOOD DEBT VS BAD DEBT
Good Debt vs Bad Debt: The Entrepreneur’s Fire In the realm of entrepreneurship, debt is fire which can forge businesses to scale or consume them. For entrepreneurs, understanding the difference between good debt and bad debt is not just financial literacy it’s survival and strategy What Is Good Debt? Good debt is borrowed capital that multiplies your impact. It is intentional, measurable, and aligned with your growth vision. It’s the kind of debt that builds assets, expands operations, and unlocks new markets. Examples of Good Debt - Business Expansion Loans: Borrowing to open a second location, hire skilled staff, or scale production. - Asset Financing: Purchasing machinery, delivery vehicles, or digital infrastructure that increases output. - Marketing Investment: Funding campaigns that convert visibility into paying customers. - Training & Capacity Building: Investing in your team’s skills to improve service delivery and innovation. - Bridge Loans for Confirmed Contracts: ...