What is Mezzanine Financing?
A Simple Guide to Mezzanine Financing: Mezzanine financing is a fancy term for a type of funding that sits between Debt and Equity. To understand it, think of it as the middle layer in a sandwich. It combines elements of both Debt and Equity. With mezzanine financing, a business can… Read more »
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 Bridge Financing? The Temporary Business Financing Solution
Bridge Financing: The Quick Fix When Your Business Needs It Bridge financing is like a lifeline for a business that needs immediate cash flow. Imagine a bridge connecting two islands: one representing the current financial situation of the business, and the other island representing the future financial goals of the… Read more »
What is Asset-Based Lending?
Asset-based lending is a form of business lending in which a loan is offered by a Lender to a Borrower against the value of one or more assets that the Borrower puts up as collateral for the loan. This asset secures the loan in a Loan-to-Value (LTV) ratio. For example,… 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 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 »
Equipment Financing for Small Businesses – How to Buy Business Equipment with a Business Loan
Equipment financing and equipment leasing companies offer business funding to companies that are looking to purchase assets such as vehicles and business equipment that will be used in the business process.