How Can High Debt Levels Impact Business Operations?
High debt levels can affect various aspects of business operations:
1. Decision-making: The need to service debt can influence the decisions entrepreneurs make, sometimes leading them to prioritize short-term gains over long-term stability. 2. Employee Morale: Persistent financial difficulties can affect employee morale and productivity. 3. Customer Relationships: In some cases, financial strain might lead to cutbacks in customer service or product quality, potentially harming customer relationships.