The Different Types of Bank Loans

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 subtypes of bank notes used to make a loan. Both categories require the owner of the small business to provide a personal guarantee to ensure the loan is paid back.

Business Barriers

No business is instantaneously successful.   There are multiple obstacles referred to as barriers all owners and managers have to overcome.   There are three primary groups of barriers for every business out there.   They include capital (financial backing), knowledge (level of education and/or experience) and persistence (staying power).   The following sections introduce …

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Convertible Debt

In poker, deuces are often called the wild card.  You can use the card as a ‘Two’ or as any other card in the deck.  In effect, you can convert the card to something else.  Well, convertible debt uses the same principle in business.  The holder of the convertible instrument has a choice, continue to …

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Rule of 72

rule of 72

A quick and easy way to determine the doubling of value for a given sum based on an interest rate is the Rule of 72.  This simple formula has three factors.  The first is the interest rate; the second is the amount of time in years to double the value and of course the number …

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Quick Ratio – Definition, Explanation and Proper Use

The quick ratio is a formula used in business to identify the ability of a business to pay its current liabilities.  It is also known as the ‘Acid Test’ formula (ratio).  In the large markets this formula is one of the financial industry ratios used to value the stock of a corporation.  In the arena …

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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 …

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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 …

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