Debt isn’t the problem — misusing it is. There’s a difference between strategic debt and survival debt. Strategic debt funds inventory you know will sell, at margins that more than cover the cost of borrowing. Survival debt covers operating expenses you can’t otherwise afford — and that’s where things go wrong.

If you’re using a line of credit to cover payroll or platform fees month after month, that’s a signal your business model needs attention — not more credit. But if you’re using a short-term facility to bridge an inventory cycle you’ve already forecasted and have a clear payoff plan for, that’s debt working for you. The distinction matters enormously.