Loans are a useful tool for bridging gaps in business cash flow, especially if you’re starting a small business. But before signing the dotted line with a lender, it’s important to understand how loans and their fees work so you can make informed decisions for your business. One consideration is Whether you’re considering short-term loans […]
Business credit cards can be a helpful tool for managing cash flow, earning rewards, and building credit for your business. However, the line between business and personal credit can be murky. In some cases, it can, although it ultimately depends on the card issuer, how you use the card, and whether the account reports to […]
There’s a lot to consider before starting a business. One aspect of launching a company that tends to get overlooked is figuring out how to obtain financing with bad (or nonexistent) business credit. Bad credit can pose a challenge, limiting your ability to qualify for a loan or resulting in high interest rates that can […]
For small businesses, getting a loan to secure funding isn’t always easy. In fact, 77% of small business owners are worried about limited access to credit affecting their ability to expand or achieve other goals. In light of common lending challenges, many lenders are willing to offer a loan when the business owner provides a […]
Sometimes, people or businesses want to make an expensive purchase, but they haven’t obtained enough cash to pay for the item in full upfront. To serve the needs of these customers, banks and other financial institutions offer deferred payments. A deferred payment allows business owners and consumers to make that purchase in installments rather than […]
When it comes to your company’s finances, few practices are more important than working capital management. By understanding the definition of working capital management and learning effective working capital solutions, you can improve the efficiency and financial stability of your business. Here’s a closer look at how you can turn working capital management into a […]
Bankruptcy is a situation no business or individual wants to deal with — but unfortunately, it happens to even the most hardworking business owners. Therefore, it can be helpful to understand how certain types of bankruptcy work, such as debtor in possession (DIP). During the Chapter 11 bankruptcy process, it isn’t unusual for a business […]
The stereotype that every lending option comes with endless paperwork can be off-putting to borrowers seeking out financing, but fortunately, several lending options require very little paperwork during the application process. These are referred to as “no-doc business loans.” You may have heard of no-doc business loans before, but you might not be familiar with […]
No business can survive for too long when its expenditures exceed the amount of money coming in, also known as negative cash flow. Periods of negative cash flow are not exclusive to businesses struggling to make money, as even businesses with high revenue can experience cash flow challenges. To combat this problem, business owners strive […]
Starting a business is a venture that most people have, at some point, strongly considered; data shows that 61% of Americans have had an idea for starting a business. However, an overwhelming 92% of those respondents never followed through with their ideas. Sometimes, all you need is a little inspiration to get going. Therefore, we’ve […]
Starting and running a business is an exciting process. You get to be your own boss, follow your passions, and add purpose to your career. However, this enthusiasm can quickly become frustrating as you start trying to fund your business. As a new business owner or a business with bad credit, it can be difficult […]
Every business owner should work to ensure customers are paying invoices in a timely manner. Slow-paying customers can cause serious cash flow problems for any business, so it’s crucial to analyze how customer payment habits are affecting your company’s growth. To do this, you can calculate your average collection period ratio. A company’s average collection […]
A good credit score plays a significant role in determining business owners’ eligibility for financing. So if you’re a new business owner and you’re getting ready to start exploring funding options, it’s imperative to first know your credit score. Once you begin monitoring your credit, you can start making strategies to increase your credit rate, […]
A company’s financial health is calculated using several different metrics. One is the Times Interest Earned (TIE) ratio, also called the Interest Coverage Ratio. Most companies need to borrow money occasionally to maintain or expand their business. However, if a company can’t meet its debt obligations, it could go bankrupt. The TIE ratio is a […]
Whether traditional lenders have turned you down or you’re simply considering alternative lending options for an upcoming business venture, you’ve likely come across the term “hard money loan.” What is a hard loan, though, and is it right for you? What Is a Hard Money Loan? A hard money loan is a type of loan […]
Running a business requires a solid understanding of basic financial terms and equations. You can use this financial knowledge to better understand how your company operates and ensure you track your finances correctly. This short article defines and details the formula for the weighted average cost of capital (WACC). This formula may seem confusing at […]
Net profit margin is one of many ways to measure the success and growth of your business over time. Your business’s net profit margin can inform decisions related to the profitability of your business, but it can’t tell you everything. Read on to learn more about net profit margin, calculating it, and how it can […]
One of the worries small businesses have is how they’ll handle their financials and who will be responsible for their banking needs. It’s a legitimate concern when deciding which banks to handle your money or which banks to choose for financial support. Depending on what you plan to do in your business, you may find […]
A return on equity (ROE) ratio measures the profitability of a business. To calculate the return on equity, business owners must divide the net income by the shareholder’s equity. Shareholder’s equity is a business’ gross assets minus liabilities. ROE is an essential metric for business owners because it allows you to gauge your profit levels. […]
If you’re a small business owner considering applying for a loan, it can be helpful to first have an idea of some small business loan statistics. By understanding what the national market trends and averages are, you can have a benchmark of sorts to help gauge what might be attainable and realistic for your business. […]
A merchant cash advance (MCA) is an advance that a business can get based on its credit card sales. Once a lump sum of money has been deposited into your business checking account, the cash advance lender will get a percentage of your future credit card sales until the advance is paid off. In this […]
There’s a reason a balance sheet is considered one of the three essential financial statements. By making a balance sheet, business owners get an inside look into how your business is performing, thus providing a guide to make more informed decisions moving forward. Every business owner needs to know how to make a balance sheet. […]
It’s the end of the year, which means it’s time to dust off your year-end accounting checklist and get to ticking off the boxes. If you’re a new business owner and you don’t have a background in bookkeeping, you may think of this as standard, monotonous housekeeping, but it’s a crucial process for business owners […]
Most business owners don’t recognize that their current loan may no longer be the best for their enterprise. And as the Covid-19 pandemic lingers, many small businesses are looking for help to remain operational. After paying your business loan for some time, there are options to reduce your debt even further. You may extend repayment […]
When running a small business, you may need to get a loan to expand your operations. However, there are many small business loans out there that have varying terms and conditions. By understanding the terms, amounts, time to funding, and eligibility requirements, you can spot a quality small business loan for your company. What Are […]
Financing a business isn’t always straightforward. There are periods you have to take loans to sustain, or even kickstart your business. Since the business ecosystem is very volatile, your company must sometimes default on loans, and that’s when you might think your business finances can potentially get intertwined with personal credit. But do business loans […]
If you’ve already determined that invoice factoring is a good fit for your business, the next step is to identify the best factoring company for you. There are many different providers to choose from – so how do you know which is the best? There are two types of factoring companies: independent factors and bank […]
Every business needs funding at some point. Some need it just to get started, others need it to meet payroll, and others need it for business expansion purposes. But not every type of funding will be available to business owners. If you run a small business, you may be restricted to alternative financing due to […]
