Finance & Lending

The loan to value ratio or LTV is a measurement of the risk level for the lender based on the amount of money being borrowed compared to the asset being purchased. It is most often used for assets that serve as loan collateral.   When the risk is lower, the lender may be open to offering… Read more »

AI systems like ChatGPT, Perplexity, and Claude (also known as LLMs or Large Language Models) can be used to help find and fix errors on your business loan application, reword sections so they’re clearer if you get stuck with phrasing, and help with the business plan portion including forecasts and charts.     This technology can be… Read more »

Lenders require a deposit, also known as an equity injection, on a business loan between 10% and 35%, depending on the type of business loan. This is a way to recover some of the losses if the borrower defaults on the business loan. Loan deposits are standard procedure when taking either large or small amounts… Read more »

Invoice factoring is when a business sells the invoices owed to them at a discount to a third party called a factoring company, and the factor company collects from the business’s customer directly.   The business selling their invoices is not required to tell the customer, but the customer will receive a notification of assignment from… Read more »

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 »