While there’s no specific amount as to how much debt you should or shouldn’t have, it’s generally a good idea to keep your business’s debt-to-equity (D/E) ratio in mind when calculating how much debt to take on. With consumer debt, this is known as debt-to-income ratio.
Your D/E ratio is measured by dividing your business’s debt by your shareholders’ equity. Your D/E ratio gives lenders (and you) insight as to whether you can afford more debt. As a result, you may want to keep that ratio low.