Working Capital: What Is It and Why Is It Essential for Business?
Many small business owners ask, "What is working capital?" Here we cover the basics to help you understand working capital and why it's important.
Business Loan Broker / Business Finance Broker
Like other brokers, a business loan broker connects people and products. Just as a mortgage broker assists in finding the right home loans for home buyers, a business loan broker (also called a ‘business finance broker’) helps business owners get business finance that fits their requirements. Here we’ll examine what business finance brokers do and how they can assist businesses in getting business finance.
Amortisation: What It Means and How to Apply It
Amortisation is a common accounting practice that is used to reduce the book value of a loan or an intangible asset over a stipulated period of time.
Merchant Cash Advance: What Is It and How Does It Work?
Merchant cash advances are an alternative form of business finance that’s popular with small businesses that need funds but don’t have assets to provide as security. With a merchant cash advance, the lending is secured with future sales made through your card payment terminal. Repayments are automatically made, with a fixed percentage of your sales made through the card terminal. The repayment portion never enters the bank account of the borrowing business but goes directly to repay the lender. Since future payments act as security, there is no collateral required. This makes it a simple form of small business financing for companies that mainly get paid through credit cards, debit cards or EFTPOS.
8 Business Loan Myths Busted
Business loan myths can hold people back when they are looking for business finance. Here we'll take a closer look at these business loan myths and why they don’t stand up.
What Is a Factor Rate?
If you have researched the business finance options available, you have probably come across the term ‘factor rate’. A factor rate is a common way for pricing certain types of business finance, including short-term business loans and merchant cash advances. If you are considering a loan that is quoted using a factor rate, it’s essential that you know what it is and what you are really paying.
How to Get a Business Loan – Answers to Frequently Asked Questions
If you've never considered how to get a business loan, you probably aren’t familiar with the process or what’s required. If you are inexperienced when it comes to business loans, here we answer some of the basic questions that are asked regularly about how to get a business loan.
Commercial Loan: What Is It and How Does It Work?
Typically, a commercial loan is a large, long-term loan that can be used for a number of purposes, including buying equipment, hiring staff or purchasing commercial property. Here, we cover the details of commercial loans in Australia.
Cash Conversion Cycle: What Is It and How Can You Improve It?
The cash conversion cycle is a way to measure the amount of time it takes a company to convert its cash on hand to additional cash. The process includes purchasing or creating inventory, selling it and eventually getting paid. Here we explore how to calculate the cash conversion cycle and how to improve it.
Cost of Goods Sold and How to Calculate It
The cost of goods sold plays an important part in how your business is performing. Besides being used in calculating business profit, it can help you set prices for your products. Here we delve into the concept of cost of goods sold (COGS), how to calculate it and how to apply it.