Do you own your business or does it belong to your creditors?

Although the Bible does not prohibit borrowing, the Scriptures caution us about the use of credit because of the obligation it creates and the subservient position it places us in relative to our creditors. Still, many businesspeople believe that they need to borrow funds to expand their business, meet current expenses, or obtain financing for capital expenditures.

Before you sign a pledge, consider each debt carefully. Ask yourself these questions: If every loan were called in today, how would I honor my commitments? Do I have the ability to pay all my outstanding obligations? If the amount you owe is greater than the value of the underlying assets, the answer is probably "no."

If you would not be able to pay off your debts in the
event they were called, you are overextended. Take caution: Creditors have a way of rising up suddenly at the worst possible moment. If they do, you will find that you don't own your own business—it belongs to your creditors.

He who is surety for a stranger will surely suffer for it,
but he who hates going surety is safe (Proverbs 11:15).

Scripture: Will not your creditors rise up suddenly, and those who collect from you awaken? Indeed, you will become plunder for them (Habakkuk 2:7).

 

 

Outline for developing a business plan