Is the debt increasing or decreasing?
Obviously, if the company does have debt you want it to be decreasing and
quickly. Although it’s normal for most businesses to have debt it is VERY
risky for a network marketing company. This is because YOUR livelihood
is at stake! And any business owner can cover up huge financial problems
by simply getting into more debt – and if the company is private you
wouldn’t know about it!
The best way to avoid this problem altogether is to work with a debt-free
company.
Personally, I own several businesses that I founded (not network marketing
companies) and one of them has debt. My business with debt is by far the
riskiest business I have. All my other businesses have cash flow that pays
for all the expenses but my business that has debt cannot do that (yet). You
want to reduce your risk as much as possible by avoiding debt!