Tag: assets

Every small business will need an infusion of cash at some point. When the need arises, a business loan with a traditional lender generally has the best interest rates and loan terms. It also requires more from borrowers though, including some form of collateral. The bank will examine your business credit as well as your revenue and your company’s financial history. If the lender determines you have enough income to repay the loan, the bank will also ask you to provide collateral – a secondary […]

Writing up an effective business plan to attract investors or lenders includes at least three essential items. Part I described the ins and outs of an income statement. This article defines the necessary elements of the balance sheet and Part III outlines the importance of the Cash Flow statement. Putting together a well-polished set of financial statements may be the key to securing the business financing you need. A balance sheet is a measure of how much your business is worth. It can be created […]

Starting up your own company can be exciting and full of adventure, but it can also come with big risks. Sometimes buying a young company can be even more exciting because your get the benefits of an existing operation with fewer of the startup financial risks. Even purchasing an existing company typically takes financing from banks or other lenders though. Those lenders will want to know why the business is worth the amount of money you are paying for it. While the actual value of a business […]

Many small businesses, especially in their early days, discover a need for a cash infusion to keep operations running smoothly. Small firms often turn to working capital loans to help bridge the gap in funding. If your business is considering such a loan, you will need to a good idea of how much money is required. Lenders will want a detailed plan of how you plan to use their loaned dollars. So how do you know how much cash you need on hand? First, you can take a look at your operating expenses. […]