Amortization is crucial for entrepreneurs for several reasons:
1. Cash Flow Management: Regular amortization payments help in planning and managing cash flow, ensuring that the business can meet its financial obligations without sudden, large outflows. 2. Interest Savings: By understanding the amortization schedule, entrepreneurs can identify opportunities to save on interest payments by making extra payments. 3. Financial Planning: Knowledge of amortization aids in long-term financial planning and budgeting, helping entrepreneurs forecast future expenses and revenues more accurately.