Current liabilities, also known as short-term liabilities, are the summation of a company’s debts, financial obligations, and accrued expenses that appear on its balance sheet and are due within twelve months. Examples of current liabilities include accounts payable, short-term loans, accrued expenses, taxes payable, unearned revenues, and current portions of long-term debt. Current Liabilities Formula…
Bad Debt Expense: Everything You Need to Know About Uncollectible Accounts
Bad debt expense is money that you are not able to collect from outstanding customer invoices. When an invoice is more than 90 days overdue businesses typically write it off as uncollectible bad debt. This will increase expenses on the profit and loss statement and decrease accounts receivable on the balance sheet by the same…
Trailing Twelve Months (TTM) – What It Is & How To Calculate It
Trailing twelve months (TTM), also known as the “last twelve months (LTM),” represents the most recent 12-months of data used for financial reporting. It typically measures past revenue or profits and is an effective way to analyze financial data in an annualized format. This shouldn’t be confused with a calendar or fiscal year. For example, a…
SBA Form 159 – What It Is & How to Fill It Out
You’re required to submit SBA Form 159 if you or your lender hires a loan packager, referral agent, broker, accountant, attorney, or consultant to help prepare or secure your SBA loan. SBA Form 159 is less common than other SBA forms, only being filled out by less than half of all SBA loan applications every…
SBA Form 912 – What the Statement of Personal History Is & How To Fill It Out
SBA Form 912, the Statement of Personal History, is used to determine a borrower’s trustworthiness and evaluate whether applicant’s or their business partners have any criminal history. The information gathered by Form 912 helps the SBA determine if borrowers are of “good character.” Completing the form accurately and in detail will help prevent delays or…
How to Lease Commercial Real Estate: The Ultimate Guide
A commercial real estate lease is a rental agreement that allows a business to rent commercial space from a landlord. Commercial leases come in three main forms: full-service leases, net leases, and modified gross leases. The process of identifying, negotiating, and signing a commercial lease is a long process and it’s important to understand the…
3 Best Small Business Loans for Minorities
Many financing products get marketed as a small business loan for minorities, but most of these loans are virtually indistinguishable from a traditional business loan. These loans have the same rates, terms, and qualifications as loans offered to any other small business. In other words, they’re a minority business loan in name only. Fortunately, there…
What Are Commercial Bridge Loans and How Do They Work?
Commercial bridge loans are a flexible loan arrangement intended to provide short-term financing until an exit strategy, such as a refinance or sale, can be executed. Commercial bridge loans act as interim funding, facilitating the purchase of commercial real estate and completion of rehabs or upgrades, but not acting as permanent financing. A commercial bridge…
Trade Finance: Import & Export Financing
U.S. small businesses engaged in international trade are well acquainted with the additional financial risks of exporting or importing goods and services from foreign countries. From fluctuating currencies to the increased pressures of a global supply chain to the difficulty of determining a foreign partner’s creditworthiness. Trade finance offers a way to mitigate some of…
Commercial Loan Calculator: Estimate Your Monthly Mortgage Payments
Have you purchased or will you be purchasing commercial real estate? Use our Commercial Loan Calculator to estimate your monthly payments. Finding the right loan for commercial real estate purchases is critical. If you’ve been in business for 3+ years, plan on occupying at least 51% of the building, and have a credit score above…