How To Avoid the Business Debt Trap

To avoid the Business Debt Trap when starting, it is often recommended to start with the minimum viable product. This gives the entrepreneur a chance to prove the concept and justify further additions of capital of either personal savings or borrowed funds. If the proof of concept works, the business owner can then gradually increase…

What is a Business Debt Trap?

A business costs money to set up and run. There are three sources of funding for business; owner savings, external debt and revenues. A business debt trap is the situation where the business over relies on external debt, and the revenues are unable to offset both the debt and recurring costs and expenses. Read How…