Debt vs. Equity Financing

Debt vs. Equity Financing

If you are a business owner, you need to gain capital to grow. Your two options available are debt or equity financing. In this article we are going to deeper into what they are, so you know which one is right for your business and your goals.

S Corporation vs. C Corporation: The Difference

S Corporation vs. C Corporation: The Difference

When you are starting your business or changing its structure, a common question to ask yourself is if you want to be an S corporation or C corporation. This is a very important step to take in your business because it implies how much you will pay for taxes, your ability to raise money, and how easy it will be to expand your business. We will review the differences between S corp and C corp structures to help you make the best decision for your business.

What is a PAYDEX Score and How They Affect You

What is a PAYDEX Score and How They Affect You

You are probably familiar with a FICO score and how important it is to stay on top of your credit. You may not be as familiar with a PAYDEX score or what it means for your business. A PAYDEX score can affect your chances of getting the best rates from your creditors. The score rates the likelihood that a business will make payments to suppliers/vendors in a timely manner. We will dive deeper into what a PAYDEX score is and how they affect the credit of your company.

How to Calculate the Valuation of Your Small Business

How to Calculate the Valuation of Your Small Business

Whether or not you plan to sell your business, you still need to know its value. Knowing the worth of your business and calculating the value is easy. Today we will cover the basics of small business valuation, the methods and how to use them to find out how much your business is worth.

Guide to UCC Filings

Guide to UCC Filings

If you have looked at your business credit report, you may have seen something called a UCC filing statement and it might be affecting your business credit score. It is important for business owners to understand what they are because if you do not, it can lead to issues down the road when you are trying to secure approval for credit.

Understanding Customer Experience for Your Business

Understanding Customer Experience for Your Business

One of the most important factors in having a successful business in any industry is having great customer experience and service. It has been on the rise for many years and continues to rise especially right now that we are living in uncertain times. Everything a business does including advertising, research, marketing, and more, all play a role in shaping the customer experience. The most important investment a company can make is focusing on customer experience management (CXM) to remain competitive in their industry. Read on to find out why customer experience is important for your business and strategies to improve it.

Your Dun & Bradstreet Rating and Its Importance to Your Business

Your Dun & Bradstreet Rating and Its Importance to Your Business

One of the most popular credit reports for businesses is the Dun & Bradstreet report. Dun and Bradstreet (D&B) is a credit reporting agency that collections private and public information to produce a credit profile. Dun & Bradstreet provides PAYDEX business credit scores as well. Your D&B business credit report shows your company information including operational data and public filings such as liens and bankruptcies. Lenders look at this information to determine how creditworthy you are. Keep reading to find out more about your D&B rating and how it affects your business.

Calculating Your Business Debt Service Coverage Ratio

Calculating Your Business Debt Service Coverage Ratio

When you apply for a loan, lenders want to make sure your small business can repay it. One way lenders determine this is by calculating our debt service coverage ratio (DSCR). This is also referred to as the debt service ratio or debt coverage ratio. Your debt service coverage ratio is calculated by dividing your business’s net operating income by your annual debt payments. We will talk you through how to calculate it for your small business and how the ratio affects your ability to qualify for a loan.

What You Should Know About NAICS Codes and Small Business Lending

What You Should Know About NAICS Codes and Small Business Lending

North American Industry Classification System (NAICS) codes are six-digit codes used by the federal government to classify businesses into an industry operating in the United States, Mexico, and Canada. The main purpose of an NAICS is to collect, analyze, and publish statistical data related to the business economy.  Banks, insurance companies, banks, and other financial institutions review NAICS codes to assess risk which can affect the financing terms for small businesses.  There are 20 sectors and over 1,000 industries in the United Sates NAICS system.

What Is Revolving Credit?

What Is Revolving Credit?

As a small business owner, there will be a time where you need to access capital to keep your business moving forward. Most entrepreneurs rely on personal credit cards, but revolving credit is a great tool that small business owners can use to get the financing they need. Read on to learn what a revolving credit is and how it works.