{"id":3107,"date":"2025-11-24T11:05:40","date_gmt":"2025-11-24T11:05:40","guid":{"rendered":"https:\/\/www.gwcindia.in\/gigapro\/?p=3107"},"modified":"2025-11-24T11:05:40","modified_gmt":"2025-11-24T11:05:40","slug":"difference-between-good-debt-and-bad-debt-in-corporate-finance","status":"publish","type":"post","link":"https:\/\/www.gwcindia.in\/gigapro\/blog\/difference-between-good-debt-and-bad-debt-in-corporate-finance\/","title":{"rendered":"Difference between Good Debt and Bad Debt in Corporate Finance"},"content":{"rendered":"

Difference between Good Debt and Bad Debt in Corporate Finance<\/h1>\n

Debt is a staple of modern business strategy, essential for fuelling growth as well as managing operations. Yet, not all debt holds the same value for a company\u2019s future. Understanding the difference between good debt and bad debt is a cornerstone of smart business debt management, especially for Indian corporate leaders focused on capital efficiency and risk management<\/strong><\/a>.\u200b<\/p>\n

What is Good Debt in Corporate Finance?<\/h2>\n

Good debt can be described as debt incurred with a strategic purpose and a clear plan for return on investment. For instance, when businesses borrow to invest in machinery, technology upgrades, or expansion into lucrative markets, they use productive debt in business operations. This form of debt is often planned, tied to growth initiatives, and structured with manageable interest rates.\u200b<\/p>\n

Some features of good debt include:<\/strong><\/p>\n