Financial Health

Creditworthy is a term used by lenders to evaluate the risk level associated with a person or a business applying for financing. Being more creditworthy means there is less of a risk of defaulting on the borrowed amount or that the lender has less risk in recovering their losses.   Creditworthiness is for both personal and business borrowing… Read more »

Capital expenditures (CapEx) are purchases of long-term assets like new vehicles or manufacturing equipment while working capital is the cash a business has on hand to cover daily operations. Working capital is calculated as the difference between a business’s short-term current assets and current liabilities.   Both CapEx and working capital are essential for business growth, but they serve different purposes. CapEx involves cash outflow… Read more »

Once your debt is paid, you can clear the assets listed for collateral from a UCC lien so that you can sell them, use them as collateral for another small business loan, or retake full ownership.  Having the assets removed is a matter of certifying that a third party does not have a claim on… Read more »

Qualifying for a small business loan to expand your business requires a different approach than taking a loan to simply maintain your business. When it comes to expansion, you can deplete cash flows each time you acquire a new company or open a new location, and it’ll take time to staff up in addition to… Read more »