Firms often finance their inventory through debt and subsequently sell it to generate profits and service the debt. Pricing of products is consequently driven by both inventory and debt servicing considerations. In the present paper, we analyze how debt distorts dynamic pricing decisions and reduces generated sales revenues. We show that debt induces sellers to always price higher than the revenue-maximizing price. We investigate the dynamics of these pricing distortions and revenue losses, and establish that sellers under debt will always discount products at a lower pace than the revenue-maximizing one, and that the distortions and losses compound over time, leading to some form of performance spiral down. We quantify the extent to which such revenue losses can be mitigated by practical debt contract terms, which emerge as natural remedies from our analysis, and find debt amortization or financial covenants to be the most effective, followed by debt relief and early repayment options.