For many small- and medium-sized business owners, the word “debt” carries a negative connotation. It is often associated with financial stress, cash shortages, or past mistakes. In reality, debt is neither good nor bad in itself. When used strategically, debt can be one of the most powerful tools available to fuel growth, stabilize operations, and position a business for long-term success. The key question is not whether a business should use debt, but when it makes sense to use debt as a growth lever rather than a survival crutch . Understanding Good Debt vs. Bad Debt Before discussing timing, it is critical to distinguish between productive debt and destructive debt. Productive debt is used to generate additional revenue, improve efficiency, or create long-term value. Examples include funding inventory that will sell quickly, purchasing equipment to increase capacity, or investing in marketing that reliably generates new customers. Destructive debt is typically used to cover chroni...