Financial Health

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 »

Having a strong net profit margin in your business does not mean you’re going to make more money as it represents how much cash you have on hand to keep — not how much your company’s revenue has increased by. It is also a measure of financial stability when economic fluctuations happen and a measure… Read more »