Lauren McKinley

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…

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…

Leasing commercial real estate for your business requires an understanding of the various steps to properly facilitate the process. You’ll have to consider the different types of leases, property conditions, and characteristics, and how to go about negotiating lease terms. In this guide, we will walk you through the process step-by-step on how to lease…

The collateral coverage ratio (CCR) is a calculation that compares the discounted collateral value (DCV) with the total loan amount to ensure proper coverage. It is calculated by dividing the DCV provided by the amount borrowed. It can be used by lenders to evaluate the maximum loan limit eligibility of a borrower, and most lenders…

For businesses without the resources to fulfill orders, PO financing can help avoid turning away customers or processing delays if you have insufficient funds or limited stock. Take note that it requires that you sell finished goods to either a business (B2B) or the government (B2G). The process is simple—the financing company reviews the order,…

The quick ratio, also known as the acid-test ratio, calculates a company’s ability to cover its current liabilities by means of its current assets. It is a liquidity ratio used by a company’s stakeholders, investors, and lenders and takes a company’s quick assets—which are current assets minus inventory and long-term receivables—and divides them by current…

Net working capital (NWC) is used to determine the financial health of a business by calculating the difference between a company’s current assets and current liabilities. You can use NWC to evaluate a company’s financial trends, growth projections, and solvency. You can use our calculator below to determine your company’s NWC. If you’re looking to…

504 loans offered through the Small Business Administration (SBA) are designed to provide funding for fixed assets that help in the creation of jobs or business growth. Some examples of allowable uses include the purchase or construction of land, buildings, machinery, and other equipment. An SBA 504 loan has two separate funding sources: Certified Development…

The capitalization rate, or cap rate, is often used by real estate investors to determine the potential rate of return from a property. It can be a useful valuation tool when comparing investment properties and can be used to figure out if a property will yield enough of a profit. However, it does have its…

The best SBA funded franchises are those that have a low default rate and a high chance of approval from the Small Business Administration (SBA). We’ve compiled data representing the top SBA funded franchises in one table and the franchises with the highest default rate from FY2020 to FY2023 in another. Top 20 SBA Funded…