I Took Out $90,000 In Business Debt And It Didn't Work Out

Steve, a deck and carpentry business owner entering his fourth year, called to discuss $90,000 in short-term business loans he took out to scale operations. The loans—from Forward Financing, a micro advance lender, and Tele Capital—came with weekly payments of $2,400 that he now can't afford amid a slow season. Despite growing revenues from $250,000 to $440,000 in the prior year, sales didn't ramp as hoped after investing in marketing, home shows, and a salesperson. His wife urged him to call instead of joining a debt consolidation program that would halve payments to $1,200.

The Pitfalls of Borrowing to Grow

Ramsey emphasized that borrowing money to expand a business is almost always a bad idea, especially in seasonal industries like deck building. Steve knew the slow season was coming when he borrowed, planning to "muscle through" with boosted revenue. But the debt created intense stress that directly impaired his business performance—correlating with poor sales. Ramsey shared from experience that this "pinch" distracts owners from core strengths, turning potential growth into struggle. The loans weren't traditional credit cards but predatory short-term advances, high-interest products designed to trap small businesses. Naming the lenders publicly serves as a warning: hearing these names means run.