Some financial planners advertise that you should have a big, long mortgage. On the other hand this article says that entrepreneurs should limit their debt. Which is right?
I come down firmly on the side of low debt. A new business will take a while to make a profit. If you are deep in debt, your debt service payments may eat you alive before your company can get established. Financial planners want you to place as much money as possible into an account with them, which they will invest in other people’s companies. I want you to place as much money as possible into an account to build your own company.
Debt can be justified in some circumstances. But if you intend to take on debt you need a plan for how you are going to use the money to build your business, not someone else’s.
Argent Place Law, PLLC focuses on businesses and business owners. The firm provides legal business counsel in matters of business, corporate and contract law, intellectual property law, and succession planning, including estate planning with wills and trusts for its CEO clients.