Finance & Lending

Business loan payback periods and ROI are related because the payback period influences the total cost of the loan and how much the monthly payment is, which impacts a company’s cash flows.   The ROI from a business loan comes from this equation:  ROI = (Return – Cost) / Cost  With this said, a full and detailed analysis… Read more »

Equity financing is a type of business funding where a company gets money by selling a percentage of ownership to investors. This is different from debt financing where businesses borrow money from lenders and pay it back with interest and the business owner retains ownership of the company.  Unlike small business loans, equity financing doesn’t have a requirement to pay anything back. Investors… Read more »

Debt financing is a term that describes any type of borrowing money where the borrower makes payments to the lender with interest, whether automatically applied or as a term for late payments. It gets its name because the borrower has a “debt” to the lender.   It’s the preferred method of financing for most businesses as the business owner or owners maintain control over the… Read more »

Soft inquiries, also known as soft pulls, are when someone looks up your personal or business credit score on your credit report with one of the three credit bureaus to see how creditworthy you are. Soft pulls are normally done when you apply for a job, when a company or research firm is interested in marketing to you, or any other… Read more »