How Much Debt is Safe for Businesses to Borrow?
So I’m still trying to get one of my businesses off the ground and I finally realized that I might need some capital investment (Play music-Dun Dun Duh)…The problem at hand: I hate debt. My original plan was to bootstrap but that will prove difficult while trying to pay for a wedding, honeymoon, and a new home for myself and my bride to be.
That being said, I finally talked myself into perhaps getting funding because, like all of us, we want our babies to be successful.
So how much debt is safe for businesses to borrow?
The long answer:
Finance for Entrepreneurs has a nice piece on this topic.
The short answer:
Borrow at least 25% less than they’ll give you.
-E




