The old saying "debt will kill you" holds particular truth in business, but strategic debt management can be a powerful tool for maintaining healthy cash flow. The key is building and maintaining strong banking relationships before you need them - what's often called "feeding your banker."

This relationship-building involves both literal and figurative "feeding." Take your banker to lunch regularly, but more importantly, maintain consistent communication about your business. Help them understand your operations, challenges, and opportunities. This understanding becomes crucial when you need support, whether for growth opportunities or during challenging times.

When debt becomes problematic, don't wait to address it. Approach your bank with transparent financial statements and clear metrics showing your business's strengths and challenges. Be prepared to discuss both your immediate needs and your long-term plan for improvement. Consider various negotiation options: interest rate reductions, extended terms, or interest-only periods. Sometimes accepting a higher interest rate in exchange for lower payments can improve immediate cash flow.

Work with your bank to refinance high-interest debt, particularly credit card balances. Avoid the temptation of quick-fix loans from alternative lenders offering fast cash at extraordinary rates. These loans often create a vicious cycle of dependency, as their high costs force you to keep returning for more funding.

Most importantly, maintain perspective on debt's role in your business. While it can provide necessary capital for growth or bridge temporary cash flow gaps, excessive debt service can strangle your operations. Regular review of your debt structure, including terms, rates, and payment schedules, should be part of your financial management routine. Remember, the goal is to use debt strategically while maintaining sufficient cash flow for healthy operations.