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 is a Variable Rate or Floating Rate Loan?
A Variable-rate or Floating-rate loan is a loan in which the interest rate varies over the loan term. This is different from a fixed rate loan that has the same interest rate throughout the loan term. The base interest rate is the prime rate, which is based on the Central Bank’s overnight rate. And then… Read more »
What is a Demand Loan?
A demand loan is a loan in which the Lender can require the full repayment of the loan by the Borrower at any time during the loan term. A demand loan can be used in many different types of loans and loan structures. It is outlined in a promissory note,… Read more »
Balloon Payment in Business Loans
In a loan that has a balloon payment, the terms of the loan require the Borrower to pay a larger final payment than previous smaller payments to settle the outstanding loan. This is called a balloon payment. It is normally the loan Principal that is paid in the balloon payment…. Read more »
Managing Accounts Receivable in a Business
What is Accounts Receivable? Accounts Receivable is money that is owed to a business after the business has sold its product to a customer. The business is waiting to receive payment for its sale. As with Accounts Payable, it is crucial for a business to manage its Accounts Receivable correctly… Read more »
The Importance of Managing Accounts Payable
Accounts Payable is the money a business owes its suppliers for goods and services that have been delivered to the business. The supplier would have also provided an invoice for the delivery. Managing accounts payable is incredibly important as it directly affects the cash flow of the business. Cash flow… Read more »
What Are Accelerated Payments in Business Operations and Business Loans?
Accelerated Payments in Business Loans Accelerated Payments in Business Loans occur when a borrower business increases the speed of repayment of its loan by: This reduces the interest costs. This can benefit a business if it expects to have sufficient cash flow to handle these accelerated payments. Accelerated Payments in… Read more »
What is a Business Loan Broker (Video)?
We should begin this conversation by stating that our firm has some of the best business loan brokers in Canada and U.S. Our mission is to understand the business funding needs of our business clients and to find and deliver the lowest-cost business loans to these clients. Business Loan Broker… Read more »
Will the Bank of Canada Cut its Policy Interest Rate from 4.75% on July 24th, 2024?
Ever since Bank of Canada governor Tiff Macklem and his board decided to cut the Bank of Canada’s policy interest rate from 5% to 4.75% – the first rate cut since the 2020 pandemic – which was announced in Ottawa on June 5th, 2024, individuals, businesses, and the capital markets… Read more »