Articles
debt
Debt as a Tool for Succession Planning: Financing a Smooth Ownership Transition
Succession planning is a critical step for any business, especially family-owned and privately held companies. Whether you're passing the business to the next generation, selling to an external buyer, or transitioning to employee ownership, having a solid financial strategy is essential. One powerful but often overlooked tool in succession planning is debt financing. When used strategically, debt can facilitate a smooth transition, ensuring business continuity and long-term success.
How D…
The Hidden Costs of Avoiding Debt: Why Cash-Only Strategies Might Hold Your Business Back
For many business owners, the idea of taking on debt feels risky and counterintuitive. Operating with a cash-only strategy seems like the safest way to avoid financial trouble, maintain control, and ensure long-term sustainability. However, while avoiding debt may provide short-term peace of mind, it can also hold businesses back from growth opportunities, operational efficiency, and financial flexibility.
In this article, we’ll explore the hidden costs of avoiding debt and how strategic …
Good Debt vs. Bad Debt: Unlocking Smart Growth for Your Business
When it comes to borrowing, many business owners instinctively shy away from debt, viewing it as something to avoid at all costs. However, not all debt is created equal. In fact, understanding the difference between good debt and bad debt can be a game-changer for your business’s growth.
What Is Good Debt?
Good debt is borrowing that creates value or enhances your business’s future performance. Examples include:
- Investing in Growth Opportunities: Expanding your operations, upgrading e…