A Uniform Commercial Code (UCC) filing allows creditors the right to take possession of assets in the event of loan default and to notify other creditors of existing liens. It’s used to create a UCC lien, and the terms can dictate that a lien be placed on a single asset or a group of assets….
What is
What Is a Business Line of Credit? A Beginner’s Guide
A business line of credit is a revolving loan that allows you to draw funds against a credit limit, which are then disbursed and accessible via a deposit account. As a revolving credit facility, you can request a draw at any time and for any amount, repay the balance over time, and continue to make…
Purchase Order Financing: What It Is & How It Works
Purchase order (PO) financing is a form of short-term financing that involves a creditor paying your supplier for goods or services to be delivered to your customers.
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,…
What Does Code 806 Mean on an IRS Transcript?
IRS Code 806 represents the tax withheld during the year on your behalf, generally on Form W-2 or 1099. Tax withholding is typically done by an employer or brokerage account administrator and acts as a prepayment of the tax that the IRS may assess when your tax return is filed. The Code 806 amount on…
Quick Ratio: What It Is & How to Calculate It [+ Calculator]
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…
Certificate of Liability Insurance: What It Is & How to Request One
A certificate of insurance (COI) is a document that provides proof of insurance. It includes policy details like your specific coverage, limits, and effective dates, but it is not an insurance contract. Companies often require businesses they partner with to carry liability insurance because they don’t want to risk being held solely responsible. In those…
Ban the Box Law: An Ultimate Guide for Small Businesses
A state Ban the Box law prohibits employers from asking about a candidate’s criminal history on a job application. Ban the box originally referred to a yes or no box on job applications that asked if a candidate had ever been convicted of a felony. This has since expanded to include questions about any criminal…
What Is ChexSystems & How Does It Impact Your Business?
ChexSystems is a reporting agency that monitors business and consumer deposit account activity. It operates similarly to credit reporting agencies when producing a credit score. If you have negative bank activity—such as bounced checks, overdrawn balances, and fraudulent or suspicious activities—these will appear on a ChexSystems report. Negative items on a report can keep you…