Reply #9: Of course but that is a far cry from saying no debt is good. [View All]

[Statistical]

Also with a loan/debt inflation works on your side. Say you finance the factor at 8% but their is 3% inflation. You effective interest cost is 5%. Now as a business you can right off that interest (35% tax bracket) thus your effective post tax interest rate is like 3.25%.

Assuming gaining the new factor in a year as opposed to 2 decades has a higher ROI than 3.25% it would be foolish not to use debt to finance capital expansion.