Behind Frenemy Lines:

A Tactical Guide to Managing Business Debt

Debt. Just the word alone is enough to make many small business owners break into a cold sweat. But before you start picturing angry bankers and ominous red numbers on spreadsheets, let’s take a breath. Because here’s the truth: debt isn’t inherently bad. In fact, when managed wisely, it can be one of the most powerful tools in your business toolkit.

Think of debt like that friend who always convinces you to take risks—sometimes it's the push you need to grow, other times it's the reason you're up at 2 a.m. questioning your life choices. In short, debt is a frenemy: part friend, part menace, always requiring you to keep one eye open.

For small business owners, debt often enters the picture early and sticks around like an enthusiastic (if occasionally overbearing) business partner. It can help you launch your dream, fund your inventory, bridge a seasonal gap, or finally hire that much-needed help. But if left unmanaged or misunderstood, it can also drag down your cash flow, stunt your growth, and cause serious financial strain.

The trick lies in understanding the difference between good debt and bad debt, how to spot the warning signs of trouble, and how to wield debt as a financial asset—not a financial anchor.

In this guide, we’re going to walk through everything you need to know about understanding and managing business debt, without assuming you have an MBA or love spreadsheets (don’t worry—we’ll explain the important concepts in plain English). We’ll cover the types of business debt, how to evaluate and manage them, what metrics matter, and how to avoid the common traps that trip up even seasoned entrepreneurs.

So whether you're feeling a little underwater or just trying to stay ahead of the tide, you’re in the right place. Let’s get to know this frenemy a little better—and learn how to keep the upper hand.

The Basics: What Counts as Business Debt?

Before we start managing debt like pros, let’s make sure we’re all on the same page about what actually qualifies as business debt. If you’ve ever taken out a loan to cover startup costs, used a credit card for business expenses, or tapped into a line of credit to smooth out cash flow, congratulations—you’ve been dancing with debt.

Business debt comes in a variety of forms, and while the word “debt” might conjure up images of bank loans and long contracts, it can sneak in through all kinds of doors. Let’s break it down into the most common types you’re likely to encounter as a small business owner:

1. Term Loans
   This is the classic. You borrow a fixed amount of money from a lender—usually a bank or online lender—and agree to pay it back over a set period of time (the “term”) with interest. These are often used for major expenses like buying equipment, renovating space, or expanding operations. Think of it like a mortgage for your business goals: You get a big chunk of money up front and chip away at it over time.
2. Lines of Credit
   A business line of credit is more flexible than a term loan. Instead of taking one lump sum, you’re approved for a set amount (say $50,000), and you can draw from it as needed. You only pay interest on what you use, not the full amount. This is great for businesses with seasonal ups and downs or unexpected expenses. It’s like a financial safety net that’s there when you need it—so long as you don’t treat it like a bottomless piggy bank.
3. Business Credit Cards
   Yes, even your handy-dandy plastic counts as debt if you’re carrying a balance. Business credit cards can be convenient, offer rewards, and help build business credit—but they can also rack up high interest quickly if you’re not paying them off in full each month. These are best used for short-term purchases you can pay off quickly—not as a long-term loan in disguise.
4. Equipment Financing
   Need a new oven for your bakery or a delivery van for your flower shop? Equipment financing lets you buy big-ticket items for your business by spreading out the cost over time. The equipment itself often acts as collateral, which can make approval easier. This can be a smart move if the equipment will generate income or help you operate more efficiently.
5. SBA Loans
   Loans backed by the Small Business Administration (SBA) are a fan favorite in the small business world. The SBA doesn’t lend directly—it partners with banks and lenders to guarantee a portion of the loan, reducing the risk for the lender and making it easier for you to qualify. SBA loans typically have favorable terms and lower interest rates, but the application process can be a bit… thorough. (Read: paperwork for days.)
6. Merchant Cash Advances (MCAs)
   Proceed with caution here. A merchant cash advance gives you a lump sum in exchange for a percentage of your future credit card sales. Repayments are made daily or weekly, which can seriously squeeze your cash flow. MCAs are fast but expensive, and they often come with sky-high effective interest rates. We’ll talk more about these in the predatory lending section (because spoiler alert: they often land there).
7. Personal Loans Used for Business
   If you couldn’t get approved for a business loan, you may have taken out a personal loan to fund your business. While it might not be listed on your business books, it’s still debt—and it still affects your financial picture. Just remember: your name is on the hook, not your business’s. That can get messy if things don’t go as planned.

The Good, the Bad, and the Dangerous: Evaluating Business Debt

Now that we’ve introduced debt’s many disguises, let’s talk about how to judge its character. Not all debt is created equal. Some of it is the dependable friend who helps you grow and keeps your business humming. Other debt? It’s that “fun” friend who always drags you into bad decisions and disappears when the bill arrives.

Understanding whether your debt is good, bad, or heading into danger zone territory is essential for keeping your finances healthy and your stress levels under control.

Good Debt: The Business Booster

Good debt is like a wise investment partner. It may not be free, but it gives more than it takes. It’s typically:

• Strategic
• Well-structured
• Linked to revenue growth or operational efficiency

Examples of good debt:

• A loan used to expand your storefront, allowing you to serve more customers and increase revenue
• Equipment financing that helps your business scale production or reduce labor costs
• A short-term line of credit that smooths out cash flow during seasonal dips, but gets paid down when sales rebound

Here’s the key test:
If the debt pays for itself over time—or helps you earn more than it costs in interest—it’s likely working for your business.

Bad Debt: The Financial Freeloader

Bad debt, on the other hand, is like borrowing from tomorrow to survive today—with no real plan for how to pay it back. It tends to:

• Carry high interest
• Lack a clear return on investment
• Be used reactively rather than strategically

Examples include:

• Using a credit card with a 29% APR to cover payroll
• Taking out a loan to pay off another loan (yep, that’s a red flag)
• Getting a merchant cash advance just to cover last month’s overdue rent

While sometimes these moves feel necessary in the moment (and hey, we’re not here to judge—you do what you have to do), they rarely solve the root problem. Instead, they often compound it, creating a cycle that’s tough to escape.

Danger Debt: The Wolf in Sheep’s Clothing

There’s also a third category—let’s call it danger debt. This is the kind of debt that seems helpful on the surface, but hides risks you may not fully understand until it’s too late.

This can include:

• Loans with hidden fees or adjustable interest rates that spike unexpectedly
• Predatory products disguised as easy-access funding (looking at you, merchant cash advances… again)
• Funding tied to personal guarantees, meaning your personal assets are on the line if the business can’t pay

Danger debt is often marketed aggressively to small businesses with “bad credit,” “no collateral,” or “urgent cash needs.” It thrives on desperation and confusion, and it rarely leads anywhere good.

So How Do You Know Where You Stand?

Ask yourself these questions:

• Will this debt help me increase my revenue or reduce my costs?
• Do I understand the total cost of the loan—including interest, fees, and repayment terms?
• Can I realistically make the payments without relying on more debt?
• What’s my exit strategy for paying this off?

If you can confidently answer “yes” to these questions and you have a plan for paying off the debt, you’re probably dealing with manageable (or even helpful) debt. If not… it might be time for a debt intervention.

Predatory Lending: The Debt That Smiles While It Bites

Let’s talk about a particularly nasty breed of business debt: predatory lending. These are the lenders who show up with a smile, offer you fast money when no one else will, and leave you tied up in a financial mess that makes your original problem look like a walk in the park.

If good debt is your wise friend and bad debt is your flaky one, predatory debt is the one who shows up at your house with pizza and ends up stealing your car.

What Is Predatory Lending?

Predatory lending refers to financing that:

• Comes with excessively high interest rates
• Uses confusing or misleading terms
• Requires aggressive or daily or weekly repayment schedules
• Is structured in a way that makes it difficult (or nearly impossible) to repay

These lenders target businesses that are in distress—those that have been denied by banks or traditional lenders. They count on you being desperate, rushed, or overwhelmed.

The result? A debt cycle that’s hard to break, where fees pile up and cash flow gets squeezed until you can’t breathe.

Common Predatory Products to Watch Out For

Here are some usual suspects that often fall into the predatory category:

• Merchant Cash Advances (MCAs)
  We mentioned them earlier, but they deserve a spotlight here. MCAs give you quick cash in exchange for a chunk of your future daily sales. The repayment is automatic—and aggressive. You’ll often pay a fixed amount every single day, whether your sales are booming or you’re in a slump. The kicker? They don’t come with a traditional interest rate. Instead, they use a “factor rate” that sounds innocent (like 1.3 or 1.4) but translates into effective APRs of 60% to 200% or more.
• Short-Term Online Loans with Hidden Fees
  Some online lenders offer fast turnaround loans with sky-high interest and hidden costs buried deep in the fine print. If you’re not reading the terms closely—or if the language is intentionally confusing—you may not realize what you’ve signed up for until it’s too late.
• Confession-of-Judgment Clauses
  This legal clause allows the lender to automatically win a court judgment against you if you default—without you even being notified or having a chance to defend yourself. Some predatory lenders bake this into their contracts so they can seize your assets immediately if you miss a payment. If your loan agreement feels like it was written by a mob lawyer… it might be time to back away slowly.
• Invoice Factoring with Hidden Traps
  Factoring can be a legit financing option, but some companies twist it into a trap. They’ll buy your invoices at a big discount (sometimes 70–80 cents on the dollar) and charge additional “handling” or “processing” fees. If your client doesn’t pay on time, you’re still on the hook, and penalties can stack up quickly. Plus, aggressive collection tactics from the factor company can damage your customer relationships.
• Loan Stacking
  This happens when you take on multiple short-term loans from different lenders, often without fully understanding how they’ll interact. Some shady lenders actually encourage this behavior, helping you get more loans to cover previous ones. It becomes a debt Jenga tower, and eventually, it collapses—usually on your cash flow.
• Auto-Withdrawal Agreements with No Cap
  Some lenders insist on daily or weekly auto-withdrawals and don’t include a cap based on your actual bank balance. If your sales dip or you have a slow month, they’ll still take the full amount—leaving you with bounced payments, overdraft fees, and unpaid vendors. A healthy lender should want to work with your cash flow, not drain it like a vampire.
• Personal Guarantees (When They’re Not Clearly Disclosed)
  It’s completely normal for lenders—especially with SBA loans or loans to brand-new businesses—to require a personal guarantee. That means you, the owner, are personally responsible for the debt if the business can’t pay it back. It’s not necessarily a bad thing—it just comes with higher stakes.
  Where things get shady is when the guarantee is not explained clearly, the lender doesn’t disclose what assets are at risk, or it’s buried in a mile-long contract without any discussion. You should never be surprised to learn that your house or savings account is on the line. A reputable lender will walk you through that part clearly—and even encourage you to seek legal or financial advice before signing.

Red Flags: How to Spot a Predatory Lender

Here are some warning signs that should make you hit pause, if not sprint in the other direction:

• Unusually fast approval (like “approved in 5 minutes!”) without much review of your financials
• Sky-high interest rates or factor rates that aren’t clearly explained
• Daily or weekly repayment schedules with no flexibility
• No transparency about total loan cost
• Prepayment penalties (you get charged extra for paying the loan off early—yes, really)
• Pressure tactics—like “this deal won’t be here tomorrow!”
• No discussion of your ability to repay or your actual business plan

Legitimate lenders want to make sure you can afford the debt. Predatory lenders just want your signature.

How to Protect Your Business

You can still borrow responsibly—even if your credit isn’t perfect. But here’s how to keep the predators at bay:

• Always read the fine print. If something feels vague or confusing, ask for clarification (in writing).
• Calculate the effective APR. If it’s not listed, ask for it. If they won’t give it to you, that’s your cue to walk.
• Get a second opinion. Have your accountant, bookkeeper, or financial advisor review the loan terms before you sign.
• Don’t be afraid to say no. Desperation can cloud judgment. Step back, breathe, and remember: there are other options.

Predatory lenders are counting on you being too overwhelmed to ask questions. So arm yourself with knowledge, stay skeptical of “too good to be true” offers, and don’t let a financial lifeline turn into an anchor.

Know Your Numbers: Key Metrics to Monitor Debt Health

If debt is your frenemy, then financial ratios are the receipts. They don’t lie, sugarcoat, or make excuses—they just show you exactly where you stand.

You don’t need to be a finance whiz to keep an eye on a few key numbers that tell you whether your debt is manageable, stretching you thin, or veering into “Houston, we have a problem” territory.

Let’s break down the most useful metrics every small business owner should know—and explain them in plain English.

Debt-to-Income Ratio (DTI)

What it is:
This compares how much debt you’re carrying to how much income you’re generating. In a business context, it often refers to how much of your gross income is eaten up by debt payments.

Formula:
Total Monthly Debt Payments ÷ Monthly Gross Income x 100%

Example:
If you’re paying $4,000/month toward debt and your business brings in $10,000/month in gross income, your DTI is 40%.

What it tells you:
A DTI under 30% is usually comfortable. Once you hit 40–50%, lenders may raise an eyebrow, and your business might start to feel the squeeze. Above that? Time to rethink your strategy.

Debt Service Coverage Ratio (DSCR)

What it is:
This measures your ability to cover your debt payments with your net operating income. It’s a key ratio banks use when deciding whether to lend to you.

Formula:
Net Operating Income ÷ Debt Payments (principal + interest)

Example:
If your business earns $12,000 in net operating income and your annual debt payments total $10,000, your DSCR is 1.2.

What it tells you:
A DSCR of 1.0 means you’re just covering your debt. You make exactly enough money per year to meet your debt servicing obligations. Anything above 1.25 is generally healthy. Below 1.0 means you’re not making enough to meet your obligations—uh-oh.

⚠️ A DSCR below 1 means you're relying on borrowed money, outside capital, or magic tricks to meet your debt payments. Not sustainable.

Interest Coverage Ratio

What it is:
This tells you how easily your business can pay the interest on its debt with your operating income.

Formula:
Earnings Before Interest and Taxes (EBIT) ÷ Interest Expense

Example:
Say your EBIT is $30,000 and your annual interest expense is $5,000. Your interest coverage ratio is 6—meaning you can pay your interest six times over. That’s solid.

What it tells you:
The higher the number, the better. A ratio below 2 might make lenders nervous and suggest you’re a little too close to the edge.

Credit Utilization Ratio

What it is:
This is primarily used with revolving credit (like business credit cards). It measures how much of your available credit you’re using.

Formula:
Credit Used ÷ Total Available Credit x 100%

Example:
If your credit card limit is $20,000 and you’ve used $15,000, your utilization is 75%.

What it tells you:
A high ratio can ding your business credit score and suggest you’re over-leveraged. Under 30% is ideal; under 10% is golden. If you’re regularly pushing 80–90%, it’s time to look at your cash flow or repayment strategy.

Bonus Tip: Track Monthly Debt Load Over Time

Beyond formulas, one of the simplest ways to monitor your debt health is to look at your monthly debt payments as a percentage of your revenue—and track how that changes over time. If it’s steadily creeping up, your debt might be growing faster than your income (which is not the growth story we’re going for).

The big idea here? These numbers are like early warning signs. They don’t just help lenders evaluate you—they help you keep tabs on whether your debt is helping or hindering your business.

Strategic Debt Management: How to Keep Your Frenemy in Check

Debt doesn’t have to be a monster lurking in your balance sheet. In fact, with a clear plan, a little discipline, and a few smart habits, you can keep your debt well-behaved—and even make it work for you.

Here’s how to manage your business debt strategically, instead of letting it manage you.

Step 1: Get Organized (Because Denial Is Not a Strategy)

First things first: take stock of all your debt. That means:

• The total balance
• The interest rate
• The minimum monthly payment
• The due date
• The repayment term
• Whether it's secured (collateral involved) or unsecured

Put it all in one place—a spreadsheet, a debt tracking app, or even a whiteboard if that’s your style. If you don’t know what you owe, to whom, or when it’s due, you can’t make smart decisions.

Step 2: Create a Repayment Plan You Can Actually Stick To

Now that you know what you’re working with, it’s time to prioritize. There are two tried-and-true methods that can help you knock down your debt:

The Avalanche Method

Focus on paying off the debt with the highest interest rate first, while making minimum payments on everything else. Once that’s gone, roll that payment into the next-highest interest debt.

Why it works: You pay less in interest over time. It’s the most cost-effective.

The Snowball Method

Focus on paying off the smallest debt balance first, regardless of interest rate. Once that’s paid, move to the next smallest.

Why it works: It gives you quick wins and builds momentum. Great for motivation.

Either method is better than doing nothing—pick the one that fits your mindset and stick with it.

Step 3: Build Debt Payments Into Your Budget

Treat your debt payments like any other essential operating expense—not like something you’ll “get to if there’s money left over.” That’s how debt grows quietly in the corner while you’re focused elsewhere. Don't have a budget? Make one. It will help you repay your debt and keep you out of a lot of situations that require you to take on debt in the first place.

Set up automatic payments where possible to avoid late fees, and review your budget monthly to see if you can put a little extra toward the principal.

Step 4: Stop Adding to the Pile

This one might seem obvious, but it’s worth saying: don’t take on more debt while you’re still working on paying off what you’ve got—unless it’s part of a deliberate, strategic move.

That means:

• Hold off on big purchases unless they’re truly necessary or will generate enough return to cover the cost.
• Pause unnecessary subscription services, software, or expenses that could be draining cash.

It’s hard to get out of a hole if you keep digging.

Step 5: Keep an Emergency Fund (Even a Small One)

This is a tough one, especially if cash is already tight. But even $1,000 to $5,000 in a separate emergency fund can help you avoid needing a high-interest loan the next time an unexpected expense pops up.

It’s the difference between saying, “No problem, I’ve got this,” and scrambling to find a lender before payroll bounces.

Step 6: Review and Adjust Regularly

Your repayment plan shouldn’t be set in stone. Review your progress every few months:

• Are you reducing balances?
• Is your interest burden going down?
• Have you freed up room in your budget?

If not, it might be time to tweak your approach—or consider more aggressive options, like refinancing or consolidation (more on that next).

The bottom line? Managing debt is part math, part mindset. With the right systems in place, you can take control of your financial future instead of letting high-interest payments call the shots.

When to Refinance, Consolidate, or Restructure

Sometimes managing debt isn’t just about making payments—it’s about making better payments. If your debt is starting to feel more like a tangle of vines than a manageable tool, it might be time to explore refinancing, consolidation, or restructuring.

Each of these options can reduce your monthly payment burden, lower your interest rates, or just help you breathe a little easier. But—spoiler alert—not all of them are created equal, and they don’t apply in every situation. Let’s break them down.

Refinancing: Swapping for a Better Deal

What it is:
Refinancing is when you replace your current loan with a new one—ideally with better terms. That could mean a lower interest rate, a longer repayment period, or both.

Best for:

• Loans with high interest rates
• Businesses with improved credit since the original loan
• Simplifying your finances by locking in a fixed rate instead of a variable one

Benefits:

• Lower monthly payments
• Less interest paid over time
• Potential to free up cash flow

Watch out for:

• Prepayment penalties on your original loan
• Origination fees on the new loan
• Stretching the loan out too long—you might pay less per month, but more overall

Debt Consolidation: Tidy Up the Tangle

What it is:
Consolidation combines multiple debts into a single new loan, ideally with a better interest rate or simpler terms. This is common when you have multiple loans or credit lines with varying rates and due dates.

Best for:

• Businesses with several high-interest debts
• Those tired of juggling multiple payments
• Situations where a new loan can offer lower overall interest

Benefits:

• One payment to manage
• May reduce interest costs
• Reduces risk of missed or late payments

Watch out for:

• Consolidating short-term debt into a long-term loan could mean more interest paid over time
• Origination fees or closing costs
• Temptation to rack up more debt after consolidation clears the slate

Debt Restructuring: Renegotiating with Your Lenders

What it is:
Restructuring involves working directly with your lenders to modify your repayment terms. This might include lowering your interest rate, extending the loan term, pausing payments temporarily, or even reducing the principal owed (though that’s rare and usually tied to severe hardship).

Best for:

• Businesses facing temporary financial hardship
• Borrowers at risk of defaulting
• Situations where refinancing or consolidation isn’t an option

Benefits:

• More manageable payments
• Preserves relationships with lenders
• Can help avoid collections, defaults, or legal trouble

Watch out for:

• It can negatively affect your credit score
• Not all lenders will agree to restructure
• It often requires a formal hardship letter and proof of financial distress

So... Which One Do You Need?

Ask yourself:

• Has your business credit improved since you first took on the debt?
• Are you juggling multiple payments and losing track of due dates?
• Are you struggling to make payments and starting to fall behind?

If the answer is yes to any of the above, it might be time to explore one of these strategies. Talk to your accountant or financial advisor to evaluate your options—because choosing the wrong one (or acting too late) can cost more in the long run.

Avoiding the Debt Spiral: Common Pitfalls and How to Dodge Them

You’ve probably heard the phrase “death by a thousand cuts.” Well, for small businesses, the debt spiral often works the same way. It rarely starts with a single bad decision—it builds up through a series of small, seemingly harmless ones that, over time, snowball into a full-blown financial crisis.

The good news? Most of these pitfalls are completely avoidable with a little awareness and planning. Here are some of the most common traps that lead business owners into a debt spiral—and how you can steer clear.

Using Debt to Cover Ongoing Losses

Let’s be blunt: debt should never be used to plug holes in a sinking ship.

Using loans or credit cards to cover consistent monthly shortfalls—like rent, payroll, or utilities—is a red flag. It’s a sign that your business model or cash flow needs attention, not just more funding.

🚨 If you find yourself borrowing just to survive month-to-month, pause and reassess the core financial health of your business before taking on more debt.

Taking on Too Much Debt Too Quickly

It’s easy to fall into the trap of taking multiple loans or credit lines at once—especially when things are growing fast. But too much debt, even if it’s “good” debt, can stretch your cash flow dangerously thin.

Every loan payment you take on reduces your financial flexibility. And if revenue dips (which it will at some point), you may not have enough room to breathe.

💡 Before saying yes to that next loan offer, ask: “Do I really need this, or am I just excited it was approved?”

Ignoring Interest Rates and Terms

Not all debt is created equal. A 10% term loan is very different from a 29% credit card balance or a 1.4 factor-rate MCA. Yet many business owners sign on the dotted line without fully understanding what they’re agreeing to.

Always read the fine print. Know:

• The APR (not just the monthly payment)
• The total cost of borrowing
• Any prepayment penalties or late fees
• Whether the loan has variable interest (which can increase)

🔍 “Fast money” almost always comes with strings. If you don’t know the real cost, you can’t make an informed decision.

Missing or Late Payments

Late payments don’t just cost you in fees—they can damage your credit, trigger penalty interest rates, and spook future lenders. And once you start falling behind, it gets harder to catch up.

Set reminders. Automate payments when possible. Even better? Build a buffer into your cash flow to avoid scrambling when bills come due.

Not Having a Plan to Pay It Off

This one’s deceptively simple. You’d be surprised how many business owners take on debt with no specific repayment plan. They assume they’ll just pay it off “when things pick up” or “once the next busy season hits.”

Spoiler: that’s not a plan—it’s a wish.

Before taking on debt, map out how you’ll pay it back:

• What will the monthly payments look like?
• What revenue will cover them?
• Will this loan generate enough return to justify the cost?

If the math doesn’t make sense, it’s not the right time.

Treating Revolving Credit Like Free Money

Business credit cards and lines of credit can be incredibly useful—but they also make it very easy to overspend. Because you don’t have to apply for each transaction, it’s tempting to use them for anything and everything.

Before you know it, you’ve got a maxed-out card, rising minimum payments, and nothing tangible to show for it.

Set a credit usage policy—yes, even if it’s just for yourself. Know what goes on credit and what doesn’t. And if you're carrying a balance? Pay more than the minimum.

Failing to Monitor Debt Regularly

Out of sight, out of mind is a risky game when it comes to debt. If you’re not tracking your balances, payment schedules, and interest rates on a monthly basis, you could be missing red flags—or opportunities to pay things off faster.

Create a simple debt dashboard you check each month. It’ll keep you grounded and proactive.

Avoiding the debt spiral isn’t about being perfect—it’s about being intentional. Small, smart decisions made consistently will protect your business from turning your financial frenemy into a full-blown villain.

When to Call in Reinforcements

Let’s be honest—managing business debt can feel like playing whack-a-mole with a calculator. Sometimes, despite your best efforts, you’re overwhelmed, your spreadsheets aren’t telling the full story, and you're one surprise expense away from a full-blown panic spiral.

That doesn’t mean you’ve failed. It means you’re a business owner. And just like you’d hire a mechanic to fix your delivery van or a web designer to overhaul your site, there comes a time when you need a financial expert in your corner.

Here’s how to know when it’s time to bring in reinforcements—and who to call.

Signs It’s Time to Ask for Help

You don’t need to be on the brink of bankruptcy to justify seeking help. In fact, the earlier you reach out, the more options you’ll have. Consider getting a professional involved if:

• You're struggling to make minimum payments or missing due dates
• You feel like your debt is growing faster than your business
• You’re regularly using new debt to cover old debt
• Your cash flow is unpredictable, and debt is making it worse
• You’ve taken on multiple loans and don’t know which to pay off first
• You have no clear repayment plan and feel paralyzed by decisions
• You’re considering refinancing or restructuring and don’t know where to start

Even if you’re just feeling stuck or unsure—those are valid reasons to call in some expert eyes.

Who Can Help (And What They Actually Do)

Let’s break down the dream team that can help you wrangle your debt and get your finances back on track:

Accountants & Bookkeepers

These are your financial translators. They help you understand what’s really going on with your numbers, identify where your money is going, and build a realistic plan to pay off debt without wrecking your budget.

What they do:

• Review and analyze your current debt structure
• Build cash flow forecasts
• Help with loan applications or refinancing prep
• Create repayment plans that work with your real numbers
• Spot tax-saving opportunities that free up cash

📘 Your accountant isn't just for tax season. They're your behind-the-scenes CFO in disguise.

Financial Advisors or Consultants

If you're juggling complex debt or trying to make long-term financial decisions, a financial advisor can help you look at the bigger picture and weigh all your options.

What they do:

• Analyze how debt fits into your overall business strategy
• Advise on growth, investment, and risk
• Help choose between refinancing, consolidating, or restructuring
• Provide impartial, objective guidance (especially when emotions are running high)

Debt Counselors (or Credit Counselors)

Nonprofit and for-profit counselors can work with you to negotiate with creditors, lower interest rates, or even arrange structured debt management plans.

What they do:

• Create debt repayment programs
• Contact lenders on your behalf
• Provide education and coaching to help avoid future issues

Tip: Make sure they’re accredited by a reputable organization like the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA).

Small Business Development Centers (SBDCs)

These federally funded centers offer free or low-cost help to small business owners, including advice on managing debt and improving financial health.

📍 Find one near you, and you may discover a wealth of resources—plus experts who understand your local market.

There’s No Shame in Asking for Help

Let’s just go ahead and say this: getting help is not a sign of weakness—it’s a sign of leadership. The smartest business owners know when they’ve reached the edge of their expertise and bring in people who can guide them through the weeds.

You wouldn’t perform surgery on yourself, would you? (Please say no.) So don’t expect to untangle complex financial stress all alone either.

Sometimes, the most powerful move you can make for your business is simply saying, “I need some help figuring this out.”

Business debt is neither a villain nor a hero. It’s a tool—a powerful, occasionally temperamental tool—that can help you grow your business, bridge financial gaps, and invest in your future… if you know how to manage it wisely.

Like any frenemy, debt demands boundaries. Left unchecked, it’ll invite itself into every corner of your finances, eat your snacks, max out your cards, and ghost you when things go sideways. But with strategy, clarity, and a little support, you can keep it in its place and make it work for you—not the other way around.

Here’s what to remember:

• Not all debt is bad—but not all debt is good, either.
• Know the difference between strategic borrowing and financial quicksand.
• Watch out for lenders offering fast cash with fuzzy details.
• Track your key metrics, stay organized, and make repayment part of your business plan.
• Don’t be afraid to call in a pro when things get complicated—smart business owners know when to get backup.

Whether you're working your way out of existing debt or thinking about taking some on for the first time, remember: you’re in control.

Debt doesn’t have to be scary or shameful. In fact, when handled right, it can be one of the most useful levers in your financial toolkit. So be strategic. Stay informed. And above all, be the boss of your money—not just the operator of a growing business, but the architect of a financially sound one.

Need a hand reviewing your current debt load or building a smarter strategy? Schedule a call today, we're here to help!

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Consult with a qualified professional for personalized guidance tailored to your specific needs and situation. Feel free to reach out to The Numbers Agency for a free consultation to see what how we can help!