Debt – The good, the bad, and the downright ugly!

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Ever wondered if debt is a superhero or a villain in the world of business? 

We get asked this question a lot! 

Whether you see debt as a trusty sidekick propelling your business to new heights or a sneaky saboteur in the shadows, we’ve got the scoop! 

….. We’ll break down the good, the bad, and the downright ugly of debt. 

Here are some examples of good debt and bad debt: 


  • Low-interest Debt – If it’s making you more money than it’s costing you, it’s a winner!  

How do we get it to make us money?  

If we can get the debt cheap (low interest rate) and use it to generate a higher return than the interest costs us. Thats good debt! 

  • Equipment Finance – Upgrade your business game without breaking the bank – that’s good debt. 

How do we do that? 

By using debt as a tool to finance equipment that allows you to do even more in your business – and you then stop spending money on costly repairs and hireage of that same equipment. 

  • Tax Pooling – Paying a little interest so you can pay your taxes at a later date and keep more money in your business? Now that’s smart debt. 

How do we use Tax Pooling as a good debt? 

Helping your cashflow by using your tax money that you should be paying to IRD by financing it and paying a small portion of interest to do so….. 

….so you keep the money in the business and use that to generate a higher return than the cost of the interest on that debt. 

But remember – you will have to pay it back at some stage – its not free money 


  • PAYE Slip-Up – Falling behind on payments? Not cool. Fix it or IRD will be on your case 
  • Debt to Creditors – Dodging those you owe? Face the music and sort it out. 
  • Getting behind on GST to IRD – Slow payments are a sign the business cashflow isn’t sorted. Get on top of this. 
  • Willy Nilly Debt – Random high-cost debt for unnecessary stuff? Not a wise move. Either for vehicles you don’t really need, finance that is easy to sign up for, or an overdraft facility that costs you each month. 

Bad debts are a sign….. 

…a sign that something is seriously wrong with your cashflow – you need to get to the core and fix it – before it destroys your business!! 

Don’t just sign up to a debt without thinking about WHY this debt is needed.  

Its not a band aid! 

It can get ugly out there.  

Address the cause of these issues and not the symptoms. 

Debt is a double-edged sword – use it wisely. 

…. It can fuel growth and support long term strategies or lead you into a financial maze. 

Debt is an easy tool to allow you to live beyond your means, buy things you don’t need or cant afford. 

Want more insights?  

Check out our blog here for a deep dive. 

Debt made simple…… 

Because your business deserves a financial ally, not a foe! 💰🚀 

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