Lauren McKinley

Venture capital (VC) is a type of financing that is provided to help scale high-potential startup businesses. Generally, this type of financial arrangement involves pooling funds from investors in exchange for equity within the company they’re financing. As a form of private equity, it’s usually offered by venture capitalists who are experienced investors and can…

Equipment financing can be used to acquire equipment necessary for your business operations. You can get a loan or a lease, depending on whether you want to utilize it for short- or long-term business purposes. The main difference between the two is that loans allow business owners to retain ownership of the equipment once the…

Small Business Administration (SBA) 7(a) loans are the most common type of loan offered by the SBA. These are government-backed loans issued through participating lenders designated by the SBA. Loan proceeds can be used for various business purposes, including purchasing equipment, inventory, real estate, and other working capital needs. You can choose from different types…

Our guide details how to get a loan to buy a business, from gathering required documents and reviewing company data to applying with your chosen lender and signing the final purchase agreement. Depending on the loan type and lender, there are various allowable uses of funds, but you’ll typically be allowed to use loan proceeds…

The loan-to-cost ratio, also known as LTC, is a calculation that’s used to evaluate the costs of a commercial real estate project. It is calculated by taking the loan amount of a commercial mortgage and dividing it by the property’s total project costs. It is reflected as a percentage. Lenders use the LTC ratio to…

Invoice factoring is a type of business financing that allows a company to get an advance on funds to cover its unpaid invoices. It can help your business with cash flow, as you don’t have to wait for customers to pay an invoice. The invoices are assigned to a factoring company, which will then provide…

A small business line of credit is a revolving credit facility that allows you to borrow funds on an as-needed basis. You can request a draw on the line, have the funds deposited to your account of choice, use the funds for business purposes, and repay the balance over time. This flexibility makes it a…

Small Business Administration (SBA) loans are issued by participating lenders designated by the SBA but are guaranteed by the government in the event of a default. To cover the potential costs of a default, an SBA guarantee fee is often included as part of the costs associated with getting a loan. The amount of this…

Small Business Administration (SBA) loan requirements are determined by both the federal government and the participating lender facilitating the loan. Eligibility criteria can vary depending on the loan program and qualifications required by the issuing lender. When determining if you meet SBA loan requirements, your business will be evaluated based on its ability to repay…

A business credit score is a number provided by a credit bureau that represents the creditworthiness of a business. It is calculated based on a variety of factors that influence the score—including financial history, business characteristics, and legal implications. It’s a valuable tool that can be used to determine the level of risk a business…

A blanket mortgage (or blanket loan) allows a borrower to finance multiple properties under one financial agreement. It streamlines the lending process and saves time and money by cutting down on paperwork and various fees associated with applying for several individual mortgages. Seasoned real estate investors use it to manage both commercial and residential properties…

The current ratio, also commonly referred to as the working capital ratio, evaluates whether a company can cover its current liabilities with its current assets. The current ratio formula divides a company’s current assets by its current liabilities. It’s a useful calculation that can be used to determine if a company can pay its short-term…