CBMC Forums Focus: A weekly blog to enlighten, encourage and equip Christian business leaders to lead in business using Biblical Business Principles.
Biblical Business Principle
Last week we focused on the Lord’s Prayer – For ever and ever, Amen. How does having eternity in your heart affect your daily business actions?
This week we will focus on a basic business principle from Business By The Book – Biblical Debt Warnings. While the Bible doesn’t forbid debt, what does the Bible warn about the dangers of debt?
- Avoid unnecessary borrowing. The wicked borrow and never repay, but the godly are generous givers. Psalm 37:21 NLT
If you borrow and don’t repay, what does this passage call you? Businesses get in financial trouble for various reasons including poor management decisions. Borrowing can keep you from doing the hard work that might result in a better long-term outcome. Borrowing can also allow you to delay making necessary tough decisions. Even in these low interest days, calculate the cost of interest as you make cost/benefit decisions where borrowing is involved. Do you consider the dangers of debt when making financial decisions?
- Seek to avoid personally guaranteeing business debt. Don’t agree to guarantee another person’s debt or put up security for someone else. If you can’t pay it, even your bed will be snatched from under you. Proverbs 22:26-27 NLT
Surety, while not forbidden in the Bible, Scripture does give warnings. Surety is guaranteeing yours or someone else’s debt. Many business owners have harmed their families when the lender seized property that guaranteed defaulted loans. Even within a company, a profitable segment can be harmed when an unprofitable segment defaults on a loan. The principle is: Don’t build a house of cards where when one fails, it all falls down. Do you know everywhere you have signed surety? Do you know the Biblical warnings about surety? (Note: If you have a credit card, you have signed surety.)
- Avoid long term debt. Just as the rich rule the poor, so the borrower is servant to the lender. Proverbs 22:7 NLT
Debt enslaves. Being debt free is freedom. Borrowing is based on future assumptions for paying back. James 4:13-14 cautions us that we don’t know the future. Long term debt can be a weight that weighs you down and slows you down. Do you believe God uses many things, including finances, to guide you in business decisions? Can God provide in ways you can’t see? Have you ever run ahead of God by borrowing instead of waiting on Him? The federal government and many business “kick the can down the road” leaving the problems of long term debt for someone else.
Read Deuteronomy 28 in the next day or so. Is it applicable for today?
Bit of Wisdom
Look here, you who say, “Today or tomorrow we are going to a certain town and will stay there a year. We will do business there and make a profit.” How do you know what your life will be like tomorrow? Your life is like the morning fog—it’s here a little while, then it’s gone. What you ought to say is, “If the Lord wants us to, we will live and do this or that.” Otherwise you are boasting about your own pretentious plans, and all such boasting is evil. Remember, it is sin to know what you ought to do and then not do it. James 4:13-17 NLT
Forums Ministry Business By the Book Workshops are an excellent way to learn and review Biblical Business Principles. Have you hosted a Business by the Book Workshop at your company or church?
BBB Groups help graduates of Business By the Book Workshops and Seminars apply Biblical Business Principles.
Forums Groups help one-another resolve difficult business issues using Biblical Business Principles through prayer, counsel, support, and accountability in a confidential closed group environment.
Business Leadership Forums are periodic events where business leaders share how applying Biblical Business Principles has impacted their business.
Forums Focus past issues are available online at https://cbmcmd.wordpress.com
Paul Lantz, CBMC
Office & Cell 941-705-6277