Recent Articles

Long Term Notes

Similar in nature to the short term notes, these notes have higher face values, typically in excess of $50,000 and require an extended application process to be approved by a committee within the bank. The payback periods range from five years to upwards of twenty years. The most common use of this type of a note is to purchase big ticket items or extend or upgrade the facilities where the business is located. The key is that the note’s lifetime is slightly shorter than the life expectancy of the associated asset.

Financial Statements for the Small Business

07/02/2015

Financial statements serve the purpose of presenting economic activity and status related to a particular date and over a particular time frame.  Accountants record monetary transactions and via financial reports present the information in an easy [...]

Long Term Debt – Financial Statement Presentation

01/07/2015

Long Term Debt is one of the multiple forms of capitalizing a business.  It includes bonds, secured notes and mortgage notes.  In the world of small business, the most common form of long term debt is secured notes, most likely with recourse.  As [...]

Insolvency and Bankruptcy – Know the Difference

02/01/2014

Every business owner needs to know the difference between insolvency and bankruptcy.  Often these two terms are misunderstood and improperly used in conversation.  You need to know their correct meaning because both are used in civil law and both [...]

Current Liabilities Section of the Balance Sheet

12/10/2013

The current liabilities section of the balance sheet identifies those amounts due to third parties within the current year.  These include accounts payable, credit card accounts, accrued payroll, taxes, unearned revenue, deposits and those amounts [...]

The Different Types of Bank Loans

02/19/2013

There are many different types of bank loans, each having their own respective purpose.  All bank loans are categorized into two distinct groupings; secured and unsecured loans.  Within in each category of loans there are several different [...]