Debt isn't your enemy. It's a decision.

Honestly, Latvia has too many smart and wealthy people who make one strangely bad decision: they believe good debt doesn't exist.

In their mind, debt means only one thing: a loan taken in panic, with no plan, no calculation, and a hope that "somehow it'll work out". Everyone remembers the collapse of the USSR, the 2008 crisis and other moments when we saw money suddenly take on a different quality.

Of course, debt can be dangerous. But the problem isn't debt itself. The problem is how it's used.

Good debt starts with math

What does money cost? 5% a year? 7%? 10%?

What will this money earn?

If you borrow 100,000 EUR for a new piece of equipment, how much additional revenue will it generate? What's the gross margin? How quickly will the investment start paying for itself?

If your profit margin is 30% with 2 cycles per year, that's 60% annually – and paying 10% for the money is highly economical.

The main question

Is profit positive after financing costs?

If yes, this is no longer just debt. It's a tool.

That's why large companies use external capital

Not because they "have no money", but because they understand simple logic: if capital earns more than it costs, it accelerates growth.

Companies rarely grow on "their own money" alone.

It's not about fear. It's not about magic. It's math.

The right question

The question isn't whether to borrow. The question is: when, how much, for what purpose, and with what calculation?

If you want to understand whether a specific financing is worthwhile for your business – calculate it with our financing capacity calculator or apply for a free assessment.