Even during uncertain economic times, debt is not always something to fear. Used as a strategic tool, smart borrowing can be part of reaching your big dreams for your small business. When we step outside our comfort zones, we step into opportunities for growth.
Think about it: a time when your competitors are pausing or slowing down may be the ideal time to leap ahead.
A Positive Spin on Small Business Debt
People assume that debt is always the result of something unfortunate like irresponsible spending choices or unexpected financial disasters. But many people fail to consider that for companies focused on growth, debt can be the result of strategic financial decisions.
When you come into it responsibly, debt is a powerful tool. With it, you can grow your business and achieve your goals much faster than if you relied only on revenue. Good debt could make it possible to:
- Launch a rebrand or marketing campaign
- Develop a new product
- Upgrade equipment
- Refinance or consolidate loans for better terms and rates
- Open a new commercial space
- Increase energy efficiency
An infusion of working capital can also help your small business keep growing in times of economic uncertainty and disruption, or get prepared for weather events.
When in Doubt, Remember the Strategy
The key is to remember that you’re doing what’s right for your business and be prepared with debt management strategies.
Start by deciding when your business can handle debt, and then find a lender you trust to start a borrowing relationship. Know how to spot predatory lenders and choose a lender that will have you and your business’s best interests in mind. With the right people behind you, debt can feel like another part of everyday operations rather than a heavy burden.
And when the application process brings up that fear, remind yourself of the dream those funds will support.
You were brave enough to start your own small business, so why should debt scare you?