Sure, you’ve heard about bad debt and have likely dealt with it first-hand. But what about “good debt”? It seems like a strange concept for a new business especially, but it’s important to accrue some.
According to an article on CNBC’s website, the key to good debt — such as business loans — is to answer this question: will the debt pay back more than the investment? Putting some foresight into the nature of the debt, such as the amount of interest owed, how the money is being used specifically, principal repayments, can help you determine if the debt is truly good for you as you build your business.
