Essential to any business is having customers pay invoices as quickly as possible, at least within the period allowed. The Average Collection Period ratio is a metric that can help determine how efficiently this is happening. Monitoring this metric can help a business determine if they have a collection problem than needs to be addressed. […]
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 can limit you from gaining access to reasonable loan interest rates and limit the number of loans you qualify for. If you want to increase […]
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 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 […]
Budgets are necessary when trying to optimize your business. Without a goal and understanding of your income and cash flows, a business budget is essentially an aimless savings account with no intended purpose. When budgeting, you must know and understand what money is available to you, how much you spend, how much you can acquire, […]
Running a business requires a solid understanding of basic financial terms and equations. You can use this financial knowledge to understand better 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 probability 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. […]
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 […]
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 […]
A balance sheet is critical for any business, and you must establish one from the get-go. They are considered one of the basic financial instruments of a business. Keep reading to find out what exactly a balance sheet is, how to correctly build one, and ways you will use it in your business operations. What […]
It’s the end of the year, which means it’s time to do your annual accounting. You may not think this is a big deal, but if you want to avoid paying penalties and interest on taxes owed at the beginning of next year, then now is not the time to procrastinate. This article will walk […]
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. Whether you […]
Financing a business isn’t always straightforward. There are periods you have to take loans to sustain your business. The business ecosystem is very volatile, meaning your company can sometimes default on loans. And that’s when your business finances can get mingled up with personal credit. But do business loans affect personal credit? The answer to […]
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 tons of different providers to choose from – so how do you know which is best? This article helps describe the differences between an independent factor and […]
The comparison of factoring vs bank loans comes up often among businesses looking to access working capital. As a factoring bank, altLINE by The Southern Bank offers a unique perspective on answering this question. We provide businesses in all industries and sizes a broad range of commercial lending options. These include invoice factoring and traditional […]
