BWK BLOG

Debt Management for Business Owners

Some of you may shudder when you hear the word “debt,” but if you’re a business owner, chances are you know that debt is often necessary. And it doesn’t have to be a bad thing. Taking out a business loan is a common and useful tool for funding a business, especially in its early stages. The trick is managing your debt wisely so that it never grows out of control or otherwise hinders your operations. In today’s blog, we’ll explore strategies of debt management for business owners. How Do Businesses Accumulate Debt? Before we examine how to manage debt, we need to understand how and why businesses accumulate debt in the first place. As a business owner, you may use debt financing for a variety of purposes. You may need a loan to cover startup costs. You may need to borrow money to help with everyday business needs, known as “working capital.” Some business owners use loans to purchase expensive equipment, inventory, or real estate. Many of these costs would prove detrimental to small businesses if they had to be paid in full, but repaying a loan over a long period of time makes them much more manageable. You can obtain a business loan from a bank, credit union, the U.S. Small Business […]