Liquidity risk is a company’s ability to meet its short-term debt obligations. It is generally lower when you can convert assets into cash quickly and is typically higher if that is a process that will take a longer time. Liquidity risk for business owners is an important concept to be aware of as it can…
Business Financing
What Is a Section 1031 Exchange, and How Does It Work?
A 1031 exchange allows an investor or business owner to sell a commercial property, acquire another, and defer capital gains taxes in the process. The name refers to section 1031 of the United States tax code. When a property is sold for cash, the net proceeds incur a capital gains tax. However, if the investor…