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…
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The Cost of Unified Communications (+ Cost-saving Tips)
The cost of unified communications (UC) varies based on multiple factors, such as deployment model, number of users, and service provider. Switching to a cloud-hosted solution incurs a monthly fee ranging from $15 to $50 per user, including features, support, onboarding, and maintenance. Meanwhile, an on-premise system entails a one-time equipment cost between $201 and…
Loan-to-Value (LTV) Ratio: What It Is & How to Calculate It
The loan-to-value (LTV) ratio compares your loan amount against the value of the collateral it is being secured by. Lenders use this to determine your loan eligibility and the specific rates and terms you’ll get.
The LTV ratio is a common requirement for secured loans, such as real estate, equipment financing, and vehicle loans. A good LTV ratio is usually 80% or less. However, the requirements can vary depending on the specific type of loan you’re applying for, the lender you choose, and the strength of your credit and finances….
What Is a Business Credit Score? A Beginner’s Guide
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…
What Is a General Ledger? How It Works & Example
A general ledger, or GL, is essentially the backbone of a company’s financial record-keeping system. It functions as a centralized repository that tracks all of a company’s transactions over time, organized by specific accounts. These accounts are categorized as assets, liabilities, equity, revenue, and expenses. The GL supports the double-entry accounting system, where each transaction…
What Is a Blanket Mortgage? A Beginner’s Guide
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…
What SBA Economic Injury Disaster Loans Are & How They Work
SBA economic injury disaster loans (EIDLs) are designed to provide funding to businesses that have suffered substantial economic injury as a result of a natural disaster. Funds can be used to cover ordinary and reasonable expenses to help the business survive until normal operations can be resumed. EIDLs are, however, only available to businesses that…
Current Ratio: What It Is & How It Works [+ Calculator]
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…