As a small business owner, it is your job to gain business capital. Without it, you won’t be able to grow your business. Whether you’re a startup or have been around for quite some time, there are usually two options available to you: debt financing and equity financing. Let’s dive deeper into the definition of each so you can understand how they differ and select the right one for your unique business and goals.  Debt vs. Equity Financing     Read More

At the basic level, net 30 refers to the time frame in which the full amount must be paid by a client. With a net 30 invoice, the client has to pay within 30 days or less. Yet that doesn’t really tell you how net 30 might help you to build commercial credit or why it can be a great choice of credit for new and old businesses alike.  Keep reading for a breakdown of exactly what is net 30 Read More

Many business budgets begin and end in an outdated spreadsheet or static shared file. Managers are responsible for monitoring and updating budgets regularly, but if they’re not timely about entering transaction data, they’re constantly operating on a budget that’s out of date. Not knowing the current status of your budget leads to overspending, under-strategizing, and missed opportunities for your business. Rather than relying on “dead” data, you can improve your budgeting strategy with “living” budgets.  What exactly is a “living” Read More

FICO has announced a new suite of credit scoring models, Fico Score 10 and 10 T, that could result in credit score drops, especially for consumers whose credit scores are already low. Should you be worried? The short answer is “not yet.” But it is a reminder to monitor your credit scores and look for opportunities to build stronger credit. Doing so will position both consumers and small business owners for opportunities to borrow on better terms. (There are over Read More

Your loan-to-value (LTV) ratio is a comparison of the amount of money you’re borrowing and the value of the asset you’re buying. It can be especially important when buying a home because mortgage lenders often use LTV ratios to help determine who to approve, how much money to lend, and how much interest to charge.  Learn how to calculate your ratios and lower your LTV, which can make it easier and less expensive to borrow money.  The Loan-to-Value Ratio Formula Read More

On your small business journey, you will encounter many forks in the road. Choosing the right direction for your company as it matures may seem daunting at times. One of the “forks” you must consider is whether or not to move your business from its default sole proprietorship status to another type of legal entity. Incorporating is the most traveled path for entrepreneurs who want to protect their personal assets, experience tax advantages, and build credibility.  Why Incorporate Your Business?  Read More