I've been preaching the need for entrepreneurs to practice fiscal prudence during these uncertain economic times. Keeping debt load to a minimum is one of the more important steps a business can take, due to the inevitability of rising interest rates if inflation continues to heat up. Also, banks will be coming under more pressure to clean up their loan portfolios -- this means that even if you have made all of your payments on time the bank may call your loan simply because your credit risk is too high to fit with tighter regulatory standards.
Helen Anderson at her blog called Bankaholic also worries about entrepreneurs who take on too much debt:
As an emerging entrepreneur, it is very easy to quickly accumulate debts that are substantial enough to kill your burgeoning business before it even gets off the ground. But it does not have to be that way. Take the time to examine your business workflow and you will likely discover a number of extraneous costs that can be eliminated to improve the health of your bottom line. Here are eight common practices that lead to common results; learn to avoid them and you will be uncommonly successful.
You can read her eight avoidable causes of unnecessary business debt here.
