What is Loan-to-Value Ratio in a Business Loan?
The Loan-to-Value ratio (LTV) calculates the maximum amount of a secured loan offered by a lender to a borrower based on the market value of collateral offered by the borrower to the lender to secure the business loan. For example, let’s assume that some equipment that is needed for a… Read more »
Finally Receiving the Loan Authorization Approval for a Business Loan
After a business goes through the necessary loan application process, the desired outcome is to get approved for the business loan. Once the due diligence process is completed by the lender, if the loan is approved, the lender will deliver its Loan Authorization. How Fast Does a Loan Get Approved… Read more »
What are Long-Term Liabilities in a Business?
Long-term Liabilities are liabilities that a business owes to its creditors that are due after 12 months. On the other hand, Current Liabilities are liabilities that are due within 12 months. Long term liabilities appear on the business Balance Sheet. Long-term debt is generally used to invest in long-term assets… Read more »
What is Inventory Turnover in a Business?
Inventory Turnover measures how many times per year a business converts its Inventory into Sales. That is, how quickly the business is able to sell its inventory. Along with Receivables Turnover, it measures the liquidity of a business, which is the ability of a business to pay its current liabilities…. Read more »