How much debt does it take to sink a company?

Taking on debt can give companies several advantages. But too much debt can be disastrous. So what is the tipping point, and what should investors watch out for? Tim Bennett explains.

If you've got a mortgage, or any other form of debt for that matter, you probably see it as a bit of a millstone. Quite right too. Until you've finally paid off the loan, you don't really own your home.

But when it comes to investing, debt isn't necessarily a bad thing. Companies often take on debt to fund expansion, for example. And it can have other advantages, as we'll see below.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.