Small Business Administration (SBA) loan requirements can be broken down into three main categories. This includes criteria that all borrowers and businesses must meet regardless of the loan program or lender chosen, items that apply to certain types of SBA loans, and lender-specific criteria. When getting an SBA loan, your business will be evaluated based…
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Ultimate Guide to Compa Ratio: What It Is & How to Calculate It
Compa ratio, also called compa-ratio, is short for compensation ratio and is a formula (Current salary/market average * 100) used to assess the competitiveness of an employee’s pay. A compa ratio of 100 indicates you’re paying an employee their full market value. Determining the compa ratio for all of your employees allows you to know…
17 Employee Training Methods (+ Free Plan Template)
Employee training is essential for developing skills, increasing efficiency, and, ultimately, boosting productivity. Choosing the right employee training method for your small business will depend on the type of training needed and the learning style of each employee. The top training methods for employees include: Apprenticeship Blended Learning Case Studies Collaborative Learning Cross-training e-Learning /…
What Is ARV: After Repair Value Formula & How to Calculate
The after repair value (ARV) is the estimated value of a property after repairs and renovations are completed. It allows investors to determine a potential investment’s sales price, repair budget, and profitability. It is used when long-term investors estimate the long-term rental value of a property and when fix-and-flip investors buy, rehab, and sell properties…
6 Best Zillow Alternatives
Compared to its competitors, Zillow has the most listings and traffic of any major website listing platform. Other listing websites, however, can also aid in expanding your exposure, focusing on specific demographics, and offering extra services that Zillow cannot provide. We evaluated over a dozen listing websites based on cost, listing and advertising capabilities, integrations,…
What Is an S-corp & How Are S-corps Taxed?
S corporations (S-corps) are pass-through entities that don’t pay federal income taxes. Rather, their profits, losses, deductions, and credits pass to their shareholders’ tax returns. The shareholders are then responsible for paying federal income taxes on their share of the S-corp’s income based on their individual income tax rates. Since S-corps are not taxed at…
Fixed Charge Coverage Ratio: What It Is & How to Calculate It
The fixed charge coverage ratio (FCCR) is derived from a formula that calculates a company’s ability to pay its fixed charges (also known as fixed expenses) from its earnings before interest and taxes. The FCCR measures solvency, or the ability to pay debts, and the ratio is used by lenders and investors to evaluate a…
What Is Job Shadowing? Benefits & Best Practices
Job shadowing is a type of on-the-job training in which an individual follows or observes (aka “shadows”) a co-worker to see firsthand what their day-to-day activities entail. It offers a unique opportunity to gain an in-depth understanding of a particular career or role. Through job shadowing, employees can develop skills and knowledge in various areas…