Many small business loans are secured by collateral, such as property or equipment, to provide security to a lender in case a borrower is unable to repay. The collateral coverage ratio (CCR) is used by lenders to set maximum loan limits on a borrower, comparing the collateral’s discounted value to the amount borrowed. Most lenders…
What is
What Is Job Rotation: How It Works, Benefits & Drawbacks
Job rotation is a talent management strategy that involves periodically shifting employees from one position to another within an organization. It gives employees an opportunity to explore various skills, gain new skills, and boost their engagement. Through job rotation, organizations can also identify people with leadership potential and train them accordingly. How Job Rotation Works…
What Is a Virtual Terminal & How to Use It
A virtual terminal is a secure payment portal used by merchants to remotely process credit card and other non-cash payments on behalf of their customers. Most payment services providers include a virtual credit card payment terminal with every merchant account. Information is encrypted as the customer’s payment details are digitally sent and received by the…
Cash on Delivery: What It Is & How It Works
Cash on delivery is a method of accepting customer payment when a product or service is delivered (as opposed to in advance). COD reduces card fees and lets customers try before they buy.
With cash on delivery (COD)—also called collect on delivery—a customer can use cash or another payment type, like a cashier’s check or credit card, to pay the courier once their merchandise is delivered. COD is popular in regions where consumer trust in online payments is low and among businesses that want to let customers “try…
Payroll Garnishments: Small Business Guide
Payroll garnishments are legal deductions from an employee’s wages, mandated by court orders or government agencies, to satisfy debts such as child support, tax levies, or student loans. Ensuring compliance with payroll garnishment rules is crucial, as failure to do so can lead to serious consequences, including fines and penalties. Payroll garnishments can be daunting….
What Is a Business Partnership?
A partnership is a business structure where two or more individuals or entities come together to conduct a business venture. Each partner contributes money, property, skills, or labor to the business and shares profits and losses. Most partnerships have an agreement that states every partner’s rights and responsibilities, how much ownership each has, and how…
Payroll for Nonprofits: An Easy Guide for Employers
Most nonprofits may have tax-exempt status, but they’re still liable for some of the same payroll taxes as for-profit businesses. Our guide tackles the different payroll taxes for these organizations.
Nonprofits are organizations dedicated to pursuing mission-oriented goals and providing public benefit. Unlike businesses, these organizations (like foundations, charities, and social welfare groups) aren’t formed to generate and distribute profit. Payroll for nonprofits is processed in much the same way that for-profit businesses do; however, there are some differences depending on your organization’s structure and…
RESPA Violations: Definition, Examples & How to Avoid Them
The Real Estate Settlement Procedures Act (RESPA) was established in 1974 by the U.S. Congress as a protection against unfair business practices and unnecessarily high costs associated with homeownership. RESPA strives to eliminate unethical practices like kickbacks, fees, and errors and ensures disclosures are provided to buyers and sellers while obtaining a mortgage. By knowing…