Debt.

Sometimes we hit a hard time in business and we might need to take on debt to make it through.

Here's where most people go wrong with debt though - there is no strategic plan behind how you're going to fix the holes. You're like the guy trying to use a rubber patch on a steel hull that really needs to be welded.

One of the things I absolutely hate about these people that do hard money lending is that there is no support. Most of the time they check credit and looks for ways to make it work and then charge so much interest up front that it makes it's nearly impossible to actually leverage that debt.

What they SHOULD be doing is 1) asking why you need the debt 2) help you develop a plan so that you never need them again.

If you think you need debt, there should be a clear POA (plan of action) before you sign on that dotted line.

Why do you need the debt?

How could you have avoided needing it?

Have you exhausted other alternatives?

Are you willing to do the work?

How fast will you pay it off?

What are you going to do to make sure you don't get here again?