What is your net worth? According to Google's definition, net worth is defined as assets minus liabilities. For an individual, it represents the properties owned, less any debt the person has. For a company, net worth is the value of the company.
Is that a good news if an individual has no debt? From the accounting point of view, of course! It means you have assets or cash and without debt, this shows the net worth is positive.
But to a Bank's point of view, an individual with positive net worth is risky to deal business with. The bank is less likely to borrow money to an individual without loan repayment history and therefore it is not easy for the individual to borrow money for business expansion or purchase property.
If you were given a choice, do you want to be the individual who is free of debt or full of bank debt?
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