Finance & Lending

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 »

Lenders use UCC filings to show what they can claim if a borrower defaults on a loan. In addition to listing what the lender is legally entitled to, the report can also show other UCC filings from previous loans. Whichever lender files first is the one that gets first access to the listed assets, and… Read more »

Lenders use UCC filings, which are publicly accessible, to show which assets from your business they can claim as collateral if you default on your small business loan. When you’re ready to take a new loan, the new lender will see someone else already has a UCC filing on your assets, making you a higher-risk… Read more »

Debt and equity financing both give you the funds to grow your business, but in different ways. If you like to be in control and make the decisions, debt equity like a small business loan from a lender is better than equity financing because you call the shots. When you are going into an uncertain… Read more »

Both small business lenders and business credit rating agencies like Dun & Bradstreet look at debt ratios because: The ratios indicate how much of your total business value you already owe to other creditors. They show how likely you are to make payments when repaying a loan. Together, they tell a story about how you… Read more »