Good Debt vs Bad Debt

"Debt is Bad."

That belief can quietly keep a great business from ever truly scaling.

Debt isn't the enemy. Bad debt is.

Using credit to buy liabilities, fund lifestyle spending, or accumulate "stuff" without a return can create what I jokingly call PTDD — Post Traumatic Debt Disorder. One painful financial experience can convince a business owner that all debt is dangerous.

I saw it in the eyes of a couple who built a construction trade company over 40 years. After surviving bankruptcy during the 2008 financial crisis and nearly losing everything, they made a vow: never go into debt again - FOR ANY REASON! Today they run a smaller family business and work incredibly hard — but they're competing against companies that can buy inventory in volume, negotiate better pricing, advertise consistently, and create runway for growth.

Sometimes avoiding debt completely doesn't eliminate risk — it creates a different kind of risk: getting outpaced by competitors who know how to strategically leverage capital.

The goal isn't debt for debt's sake.

The goal is using the right financial tools intentionally to create capacity, preserve cash flow, maintain dry powder for opportunity, and build a business that can grow beyond survival mode.

What's your definition of "bad debt"?

And a harder question:

Do you have the growth mindset to strategically leverage capital for growth — or have past experiences shaped how you see debt today?

👇 I'd love to hear your perspective.