Using debt to grow and scale!
How do you view using credit lines, vendor lines of credit, credit cards, and loans to grow your business? If you prefer to grow debt free what is your strategy? What do you think are the pros and cons of each?
Forum Discussion
4 Replies
I recommend growing your business by first reinvesting your profits and using vendor credit to help with everyday expenses and staying debt-free as long as you can. Only jump in and take out loans or lines of credit when you see a clear ROI for whatever the debt amount is.
Using debt is the wisest way to grow and scale. However, "scaling" is the new cool term when most should just focus the basics until they get to this point. Growing and scaling is not always the best option for everyone and should be part of your biz plan from the beginning anyway.
What do you think are the signs that a company should not be focusing on scaling, or using debt to grow?
I think if your business is in the red, it's not the time to be scaling or trying to take our debt. Your basics need to be solid before you take on the added challenge of growing or pulling debt.
