Podcasts · The How of Business - How to start, run, grow and exit a small business.
566 – Good Debt Bad Debt
· 20 min · Episode 566
Episode 566 – Good Debt Bad Debt
Good Debt Bad Debt: How to Borrow Strategically in Business.
Show Notes Page: https://www.thehowofbusiness.com/566-good-debt-bad-debt/
In this episode of The How of Business, host Henry Lopez reframes how small business owners think about debt. While consumer debt is often harmful and emotionally charged, Henry makes the case that strategic borrowing, or good debt, can be an essential growth tool for entrepreneurs.
Henry walks through key differences between personal and business debt, outlines how to identify smart uses of debt (like funding revenue-generating assets or covering working capital gaps), and warns against the dangers of relying on debt to prop up an unprofitable business model.
Also learn about core financial concepts including leverage ratios, opportunity cost, and the time value of money, and how to apply them when making borrowing decisions. Henry shares practical tips, such as using low-interest loans over high-interest credit cards, keeping operating reserves, and not rushing to pay off good debt early if it's working for you.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com
Links in the notes 2
- https://www.thehowofbusiness.com/566-good-debt-bad-debt/
- https://www.youtube.com/redirect?event=video_description&redir_token=QUFFLUhqbEJyUnNuemVTYTRuMFJBbENMS3BuLUNUOHBld3xBQ3Jtc0ttRDdSbWxISVBPT0J5VE1hdnJiVmo3VVFUNFRqNG1ya0x2YXRKcU40cHZUdnRnLU9PWUVRWmduc1RfVS1CSExtWUhTUHVmR29vb3M4RDBGYmtKQndXX2Jtc1R4SGNnNjJLNGFxaHBHV3FtbnhVSDBJdw&q=https%3A%2F%2FTheHowOfBusiness.com%2F&v=_DUqmLHDHQM
Shows are listed from Apple Podcasts' charts and directory, and Podcast Index where it is used. Every show and episode belongs to its publisher and plays from the publisher's own feed; this site hosts none of them. Explicit shows are for adult profiles only, and children’s profiles hear only children’s shows. More about this list.