Kelly Hillock

Kelly Hillock is the content marketing manager for National Funding, where she writes and edits articles for small business owners. Kelly has over eight years' experience in copywriting across a variety of industries, focusing on entrepreneurship and finance. She has a Bachelor of Arts in journalism from San Diego State University.

How Purchase Order Financing Works

Purchase order financing, also known as PO financing, is when a third party loans a business the money to increase production and meet the needs of a customer in exchange for payment with interest once the customer pays. It is similar to a small business loan in that you can get the financing you need… Read more »

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What is Cash Flow and How to Calculate It

Cash flow is the movement of actual dollars into and out of a business and does not include non-cash items. One example is that accounts receivable counts toward revenue, but you don’t receive any cash. Another is depreciation, which is an expense that you subtract from revenue before you get profit, but you don’t actually… Read more »

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Depreciation is an Operating Expense & Needs Separating

Yes, depreciation is an operating expense when you use the asset you’re depreciating for your core business operations according to Generally Accepted Accounting Principles (GAAP). Your core business is how you regularly generate revenue as opposed to other activities that create revenue on the side or sporadically.  Depreciation can be a non-operating expense when the… Read more »

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How Bracket Creep and Inflation Impact Taxes and Profit

Bracket creep is when bigger profits from your business move you into a higher tax bracket, causing you to pay a larger percentage and more total taxes. This happens because the IRS divides your income into segments and the tax rate increases for each segment as your small business profit grows.  C-corporations and LLC’s taxed… Read more »

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How Debt Service Coverage Ratios Apply to Loans

Your debt service coverage ratio is a calculation that shows the percentage of cash available to make loan payments after subtracting other expenses, and it is used by lenders to determine how risky your business is to lend to.   A ratio of 1 means that your business has the exact amount of capital required to… Read more »

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