> No, debt is spending your future cashflow to increase your future cash flow. No, with debt you gain capital now. Future cashflow is not guaranteed oe even ex

> No, debt is spending your future cashflow to increase your future cash flow. No, with debt you gain capital now. Future cashflow is not guaranteed oe even expected in most cases (e.g.:how will a mortgage generate future cashflow? Rent your house,hope future rent value is higher?). You might get more cashflow in the future if your debt was for a good investment. But even then, until you pay off the debt, your future cashflow will have your debt payments subtracted from it, even if you have positive cashflow after that, your argument only makes sense if the that cash flow is more than your existing cashflow (possible but rare). There is a big difference between calculated debt made for a business investment and debt (however calculated) made to aquire equity or to afford goods and services. > Yes. This is where debt comes in. No, this is where revenue stream comes in. For a salary man, this means getting promotions and saving up. For a business person, this means making profits and increasing profit margins. In both cases what you can "afford" is liquid cash , not loans. > No it increases it. Debt lets you turn an illiquid asset like a building or accounts receivable in to immediate cash It does turn it into cash, but you're getting into debt to spend that liquidity right away. Who gets into debt for long term liquidity? If your business is modeled to grow then you should see increasing profit margins over time, this profit is what should sustainably provide liquidity. Your future decisions are not made in fear of missing bank payments. You will always need more cash, so whatever revenue you will make in the future will always go to banks since you're always getting into debt (unless you have remarkable discipline). If you get into debt because an unexpected event requires you to have more immediate liquidity than what you have, I think that's fine. But my position is that you shouldn't plan on getting into debt from the begining.