Secured Loans

Notes whereby collateral acts as the security in case the borrower fails to pay back the note. The most common type is an auto loan, others include short term notes for equipment, mortgage notes, lines of credit used to address receivables or inventory. At closing, not only is a note signed, but a collarateral agreement and a security agreement are signed and attached to the note.

Debt or Equity in Small Business – Fundamentals

Small business books and manuals explain the formula used to determine whether additional debt increases the return for investors commonly known as return on investment (ROI).   I find this laughable in our modern economic times given the low cost of financing.   For well qualified individuals, money can be borrowed at less than 6% …

Debt or Equity in Small Business – FundamentalsRead More »

Small Business Administration – Capital, Development & Contracting

The Small Business Administration (SBA) is an agency of the federal government that provides loans, counseling and procurement opportunities with the federal government.  Simply stated: “The SBA helps Americans start, build, and grow businesses”.  No other resource exists that is as dynamic and beneficial to the small business owner as the SBA. Most small business …

Small Business Administration – Capital, Development & ContractingRead More »

Cash is King – The Value of Cash Flow

For any small business operation, getting cash into the bank account is critical to survival.  Without cash, the probability of success dissipates quickly.  So how do you get cash into the bank account?  There are several sources of cash: they include capital, loans and customer payments. Capital When the business operation starts the owners or …

Cash is King – The Value of Cash FlowRead More »