Acceptable debt

Is debt bad?  This is a controversial topic!

Although a solid credit record is a good thing for people and businesses to have, it's best for businesses to think in terms of how they can fund their operations from money they make doing what they do.

How do you know when a company has too much debt? 

Generally, if a company has solid cash flow and a  return on investment (ROI) that's significantly greater than the percentage it is paying on borrowed funds, it's probably going to be okay.

A balance sheet loaded with debt will devalue your business over time.  Therefore, if you find that you have to take on debt, treat it as a short-term expense to be extinguished quickly.  (That's not a bad idea for your personal finances, too.)