Category: Business Credit

How to Create a “Living” Budget For Your Business

January 24, 2020 Alex Bean

Many business budgets begin and end in an outdated spreadsheet or static shared file.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regularly, but if they’re not timely about entering transaction data, they’re constantly operating on a budget that’s out of date.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

Should You Be Worried About the New FICO Score?

January 23, 2020 Gerri Detweiler

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

In Accounting, Why Do We Debit Expenses and Credit Revenues?

January 22, 2020 Susan Guillory

You didn’t go into business to become an accountant, so it’s understandable that you’d have questions like, “Are expenses debit or credit?” In short, because expenses cause stockholder equity to decrease, they are an accounting debit. It’s helpful to understand why, so learn what you need to know in this article. Understanding Debits and Credits Let’s start with some basic Accounting 101. We may have moved away from “managing the books” in an actual paper ledger and painstakingly entering each… Read More

Why Do Loan-to-Value Ratios Matter?

January 21, 2020 Louis DeNicola

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

How To Become Incorporated and Why To Incorporate Your Business

January 20, 2020 Ashley Sweren

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

SBA Loans for Women: What You Should Know

January 14, 2020 Ben Luthi

There’s no such thing as SBA loans for women, as the U.S. Small Business Administration (SBA) makes its loan available to all business owners who qualify. However, there are some excellent resources available to female business owners, and an SBA loan may still be the best fit for your small business. If you’re looking for a way to fund your business growth, here’s everything you need to know about your options. SBA loan options While there aren’t any SBA loans… Read More