How Does a Profitable Company Suddenly Lose the Ability to Service Debt?

A company can be profitable and still fail to service its debt. That surprises founders every year. Profit is an accounting measure. Debt service is a cash requirement. Those are not the same. At the Founder's Office, we see this happen during growth. Revenue rises, costs rise faster, customers pay later than expected, inventory builds. The income statement looks strong. The bank balance tightens. Layer debt on optimistic projections and coverage ratios shrink quickly. Add variable interest rates and the pressure intensifies. This is where the founder's isolation paradox appears. Founders carry the full weight of covenants, payroll, personal guarantees, while advisors operate in lanes. The Capital Alignment Method teaches that capital must align with volatility. Speed without clarity compounds risk rather than return. The Six Keys of Capital remind us that the structure must remain durable under stress. Profit is not protection. Alignment is. I'm Tom Powell, and at the Founder's Office, we work with founders to build value deliberately along the way, not when they're forced to exit under pressure.