How the wealthy use debt to get richer, two CAs explain
Debt as leverage, not liability
Explore courses from Top Institutes in
Select a Course Category
Digital Marketing
MCA
MBA
Healthcare
Leadership
Design Thinking
Public Policy
Data Science
Operations Management
Technology
Management
Project Management
Degree
Data Science
others
Cybersecurity
Product Management
Artificial Intelligence
PGDM
Finance
CXO
Others
healthcare
Data Analytics
Skills you'll gain:
Digital Marketing Strategies
Customer Journey Mapping
Paid Advertising Campaign Management
Emerging Technologies in Digital Marketing
Duration:
12 Weeks
Indian School of Business
Digital Marketing and Analytics
Starts on
May 14, 2024
Get Details
Skills you'll gain:
Digital Marketing Strategy
Search Engine Optimization (SEO) & Content Marketing
Social Media Marketing & Advertising
Data Analytics & Measurement
Duration:
24 Weeks
Indian School of Business
Professional Certificate Programme in Digital Marketing
Starts on
Jun 26, 2024
Get Details
According to them, the main difference between how average businesses and wealthy businesses operate lies in their use of capital. 'Entrepreneurs stay small not because they lack ideas but because they rely only on what's in their bank account,' said CA Vishnu Gupta. 'The wealthy don't use their own money to build empires, they use other people's money in a structured, planned way.'
This approach, they say, allows them to access larger projects, hire talent, and scale faster without diluting ownership or waiting for profits to build up over time.
Why avoiding debt can limit growth
CA Prakhar Gupta explained that many small and medium-sized businesses (MSMEs) in India stay cautious about loans due to fears of financial stress or past bad experiences. However, he added that debt, when matched with cash flow and growth plans, is not a burden. 'Borrowing is not about desperation. It's about direction,' he said. 'If you borrow with a clear outcome and repayment strategy, you can build assets, grow revenue, and lead your industry.'
Live Events
CAs Vishnu Gupta and Prakhar Gupta, who have recently launched their debut book — How the Wealthy Borrow to Win — argue that access to capital is no longer the problem; awareness and mindset are. Many entrepreneurs continue to run profitable but under-scaled businesses because they are unwilling to take calculated financial risks.
Lessons from wealthy business owners
The wealthy, they point out, focus more on return on capital than cost of capital. 'They measure every rupee borrowed by what it can generate,' said CA Vishnu Gupta. 'If taking a ₹1 crore loan helps build a ₹5 crore revenue stream in two years, that's good borrowing.'
They also use instruments like project loans, asset-backed finance, and revenue-based funding. Importantly, they structure these borrowings in a way that matches the lifecycle of the business and its risk profile.
Strategic borrowing
is a skill
The two experts say financial institutions are ready to lend to businesses with clear plans, strong execution, and predictable cash flows. What's often missing is the skill to plan that borrowing correctly.
They believe India's family-owned businesses, service professionals like doctors and architects, and even startup founders can benefit from adopting a more structured approach to borrowing. 'It's not about taking on more debt. It's about using the right debt, at the right time, for the right reasons,' said CA Prakhar Gupta.
A shift in thinking for Indian businesses
The conversation around debt is slowly changing in India, especially among younger entrepreneurs and second-generation business leaders. But the experts believe much more awareness is needed.
'Smart borrowing separates companies that grow from those that stall,' said CA Vishnu Gupta. 'It's time Indian entrepreneurs stop treating debt as a danger and start treating it as a driver.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Housing price index of 13 major cities rises 8 points annually in March: Housing.com-ISB report
The housing price index of 13 major cities rose by eight points year-on-year to 132 during March this year on strong demand for residential properties, according to a report by REA India and Indian School of Business. The Housing Price Index (HPI), a joint initiative between REA India's real estate classified platform and the Indian School of Business (ISB), tracks price trends across 13 cities. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Orthopedic Knee Surgeon: Suffering From Pain After Age 50? Do This Every Morning Wellnee Undo These are Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune. The index shows a moderate 8-point increase to 132 in March this year, as against 124 in the same month last year. However, the index remained stagnant compared to February this year. In January 2025, the index was at 131 points. "The Indian housing market is currently in a phase of healthy consolidation. After an extended period of price escalation across major cities, we are now seeing a welcome stabilisation in values. This price stagnation, while reflective of cautious market sentiment and supply-side adjustments, is also laying the foundation for more sustainable growth," said Praveen Sharma, CEO, REA India ( Live Events He expected the trend to continue in the near term, which could encourage more end-users to return to the market. "At the same time, with improving affordability due to recent rate cuts and strong underlying demand drivers such as income growth and lifestyle aspirations, we remain optimistic about the long-term resilience of the housing sector," Sharma said. Shekhar Tomar, Assistant Professor of Economics and Public Policy at ISB, noted that price stability points to a more mature and balanced housing market. The report noted that the price stabilisation in early 2025 reflects an interplay of global headwinds, cautious buyer sentiment, and reduced launches. PTI
&w=3840&q=100)
Business Standard
3 hours ago
- Business Standard
Housing price index of 13 cities rises 8 points annually in March: Report
The housing price index of 13 major cities rose by eight points year-on-year to 132 during March this year on strong demand for residential properties, according to a report by REA India and Indian School of Business. The Housing Price Index (HPI), a joint initiative between REA India's real estate classified platform and the Indian School of Business (ISB), tracks price trends across 13 cities. These are Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune. The index shows a moderate 8-point increase to 132 in March this year, as against 124 in the same month last year. However, the index remained stagnant compared to February this year. In January 2025, the index was at 131 points. "The Indian housing market is currently in a phase of healthy consolidation. After an extended period of price escalation across major cities, we are now seeing a welcome stabilisation in values. This price stagnation, while reflective of cautious market sentiment and supply-side adjustments, is also laying the foundation for more sustainable growth," said Praveen Sharma, CEO, REA India ( He expected the trend to continue in the near term, which could encourage more end-users to return to the market. "At the same time, with improving affordability due to recent rate cuts and strong underlying demand drivers such as income growth and lifestyle aspirations, we remain optimistic about the long-term resilience of the housing sector," Sharma said. Shekhar Tomar, Assistant Professor of Economics and Public Policy at ISB, noted that price stability points to a more mature and balanced housing market. The report noted that the price stabilisation in early 2025 reflects an interplay of global headwinds, cautious buyer sentiment, and reduced launches. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
3 days ago
- Time of India
India reports 65% jump in Grade A green-certified office buildings
India has reported a 65% jump in overall Grade A green- certified office stock across the top 7 cities since 2019 as developers are increasingly constructing LEED, IGBC or GRIHA certified stock to stay in sync with the demand. According to Anarock data, about 530 million sq ft of Grade A office stock in the top 7 cities out of the total Grade A office stock of 865 million sq ft is green certified as of H1 2025 across cities. Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Data Science CXO Technology Management Healthcare Others Design Thinking Public Policy PGDM Cybersecurity Product Management Leadership Data Analytics MCA Operations Management Artificial Intelligence others MBA Degree Digital Marketing Finance healthcare Data Science Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details Back in 2019, 322 million sq ft had such certification. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo At 163 million sq ft, Bengaluru has the maximum stock of green-certified office inventory among these cities in H1 2025 – a 31% share of the total, green-certified stock in the top 7 cities. 'The push towards sustainability comes partly from the Government's own initiatives and commitments, and partly from the demand for such solutions. There is increasing awareness about the need for sustainability across all real estate segments,' said Anuj Puri, Chairman - Anarock Group . Live Events As per Anarock data, the top 7 cities saw approx. 26.8 million of office space leased in H1 2025, of which over 74% was in green- certified office buildings. City-wise, Bengaluru led decisively - of the net 6.6 million sq ft Grade A office stock leased in the city in the first half this year, certified green buildings accounted for a massive 80%. 'However, the demand for sustainable office buildings outstrips that for green housing. A vast number of occupiers, especially MNCs and GCCs, now insist on sustainability features only available in green-certified Grade A office buildings." In contrast, there has still not been such an imperative-driven shift in the Indian housing segment, and this is visible in the relative scarcity of green residential stock in the country,' Puri said. Despite their commanding premium rentals vis-à-vis regular Grade A office stock, green-certified office spaces have seen leasing increase significantly over the last six years. 'Sustainability is no longer just about meeting regulations. In commercial real estate, it is quickly becoming a genuine advantage. A 24% rental premium and lower vacancy rates show that companies are willing to invest more in spaces that reflect their ESG values and support their people. What is also clear now is that corporates see the carbon performance of office interiors as just as important as green building certifications. Sustainability in fit-outs is becoming a strategic priority for both global and Indian occupiers,' said Vibhor Jain, Founder & CEO, Carbon Guardians , a firm specializing in Design & Build and managed offices. The average monthly rentals of green-certified office spaces in the top 7 cities are up to 24% higher than in regular, non-certified Grade A office stock. 'The surging popularity of green office buildings across India is not merely a passing trend, but a strategic imperative in line with the nation's bold climate ambitions. India has committed to achieving net-zero emissions by 2070, and to expand its non-fossil energy capacity to 500GW by 2030. Green office buildings are a major link in this equation. As India grapples with escalating urban pollution and environmental pressures, both developers and businesses must take responsibility for championing sustainable choices in the built environment,' Puri said.
