Where are You Investing Your Corporate Funds?

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Debt poses a wide variety of problems for those organizations who suffer under a heavy burden of loans. The emotional aspects of debt ownership can’t be overlooked, but ultimately the biggest problem caused by a large debt load is the negative strain it places on your cash flow. The bigger your debt, the more you need to pay your lenders every month to simply tread water. And the more money you send your lenders every month, the less money you have to invest in the development and growth of your own organization.

Every dollar your organization spends is an investment. When you purchase new, top-of-the-line equipment you invest your money in the increased efficiency and effectiveness that equipment provides. When you hire new employees, you invest in the added capacity they provide your organization. Even when you simply place your profits in the bank, you invest in an added sense of security and your organization’s ability to take advantage of future opportunities.

If every cent your organization spends is an investment, than what is your organization investing in when you send your money out to a lender every single month? Well, when most of your funds are tied up in debt repayment, most of your funds go towards investing in the prosperity of your lenders. When you have a large amount of debt you won’t be able to facilitate the growth of your own organization, but you will play a crucial role in facilitating the growth of the organization that provided you with your debt.

How does that sound to you? Would you rather work hard to improve the future of your organization, or the future of your lender? Where are you currently investing most of your corporate funds? Can you think of a better use for those monies tied up in fending off large monthly payments?