Business Banking

What Is a Deferred Payment and How Does it Work?

Sometimes, people 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, service providers, banks, and other financial institutions offer deferred payments. A deferred payment allows you to make that purchase without breaking the bank. How so? Let’s […]

What Is Working Capital Management? Tips, Strategies, Ratios & FAQs

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 […]

Debtor In Possession: Meaning, How It Works, DIP Financing And FAQs

Bankruptcy is a situation no business or individual wants to deal with — but unfortunately, it can happen. During the Chapter 11 bankruptcy process, it isn’t unusual for a business to have debtor in possession status over its property and other assets. But what does that mean? By understanding the meaning of debtor in possession […]

Guide To No-Doc Business Loans: How To Choose The Right Loan For Your 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 […]

Tips For Small Businesses Looking For A Cash Infusion

Best Small Business Podcasts of 2024

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 […]

Can You Get a Small Business Loan With Bad Credit?

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 […]

What Is the Average Collection Period?

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 […]

Guide to Business Credit Scores and How to Check Them

A good credit score plays a huge role when looking for business financing. If you are currently struggling with getting business financing, check your credit score. A poor credit score might be what’s preventing your business from gaining access to reasonable loan interest rates and limiting the number of loans you qualify for. Once you […]

The Times Interest Earned Ratio and What It Measures

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 […]

Financing With Hard Money Loans

Whether traditional lenders have turned you down or you’re simply considering financing 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 that […]

What Is the Weighted Average Cost of Capital (WACC)?

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 […]

What Is Net Profit Margin?

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 […]

Best Large Banks for Small Businesses

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 […]

What Is Return on Equity Ratio (ROE)?

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. […]

12 Small Business Loan Industry Statistics

Suppose you’re considering applying for a small business loan. You might wonder how good your odds are of getting approved for some form of financing. We understand your concerns, and we’re happy to say that the odds of receiving some financing are in your favor. In this article, we’ll provide information on some statistics and […]

Merchant Cash Advance Industry Statistics

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 […]

How to Make a Business Balance Sheet

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. […]

Year-End Accounting Checklist for Your Small Business

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 […]

How to Refinance a Small Business Loan

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 […]

Common Small Business Loan Terms

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. Whether you […]

Does a Business Loan Affect Personal Credit?

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 […]

Why is a Bank Factoring Company Better?

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 […]

Invoice Factoring vs. Bank Loans

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 […]