Trev31 Jan 2014 11:37
Agreed, they may pay off debt as yes your correct its costs in interest. But we dont know the terms of the debt and paying off the debt may be a strain on cash flow. Instead why not use the money which you think they would clear the debt, to invest in the business and generate sales, so the debt becomes less of a percentage of turnover thus changing the gearing of the company making the company in a healthier position.