High Debt Burden (Sole proprietor)

A high debt burden increases the risk that Sole proprietor goes bankrupt if they make a poor business decision. Increasing risks can increase Sole proprietor’s debt interest payments… … "High Debt Burden (Sole proprietor)" has a significant impact, so an analyst should put more weight into it. "High Debt Burden (Sole proprietor)" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "High Debt Burden (Sole proprietor)" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.