“Debt can be a useful way to start your business, but without proper management and care, things can turn ugly quickly.”
Business Debt: How Much Is Too Much?
Running a small business can take a lot of time and money, which is why many entrepreneurs leverage debt in the beginning.
Debt can be a useful tool to start your business, but make sure your debt is working for you, not against you.
How much debt does the average small business have?
17% of small and midsize businesses have outstanding debt that ranges between $100,000 and $250,000
Too Much Business Debt?
There is no straightforward answer as to how much business debt is too much — it depends on the type of debt and the kind of business you run. How well you’re able to manage that debt matters, too.
If your business regularly misses payments or runs out of cash before the month is over, that’s a sign you have too much business debt.
If your business debt exceeds 30 percent of your business capital, this is another signal you’re carrying too much debt.
BUSINESS DEBT & CASH FLOW SOLUTIONS
Bernarsky Partners LLC is a business financial services advisory firm comprised of finance professionals with extensive industry experience offering Business Debt Solutions.
Some of our Business Debt Solutions include:
2. RESTRUCTURING BUSINESS DEBT
4. BUSINESS CASH FLOW ANALYSIS
Setup a free consultation call with us to review your business debt and cash flow situation, business goals and to discuss Business Debt refinancing and restructuring options.