SBA loan requests are notorious for the rigorous application process. The SBA examines your business financials and looks at the character and background of all principals in the business.
SBA Form 1919, “Borrower Information Form,” is a significant part of that process. The SBA uses the form to collect information about your business, the loan request, ownership, criminal background (if any),
The cost of goods sold is an inventory valuation method to determine the exact inventory costs of the products you sell during a specific period. The cost of goods sold is sometimes referred to as the “cost of sales” or abbreviated by its acronym, COGS.
Any business selling physical inventory needs to determine COGS, but it primarily impacts retail and manufacturing
EBITDA is a business analysis metric used to evaluate a company’s financial health and long-term profitability. The acronym stands for earnings before interest, taxes, depreciation, and amortization. It helps accounting professionals understand the effects of a company’s capital structure on the bottom line.
Your net revenue reporting gives you a solid understanding of your sales efficiency. Your net income tells you how much profit you make. Understanding both metrics is essential to assess your company and identify where you’re strong and where you can improve.
The main difference between the two is that SIC codes are for domestic purposes and NAICS codes apply to US, Canada, and Mexico businesses. We should note that other countries, such as the UK, also adopted SIC codes.
SIC codes are four digits, while NAICS codes are six digits. NAICS codes were developed to replace the former, but as so many
The purpose of the guarantee fee is to help offset the costs when the SBA has to pay a guarantee on defaulted loans. Instead of funding the guaranteed portion of the loan from the American taxpayer, the SBA charges lenders a fee.
Lenders then pass the fee on to the borrower. Most lenders will package the fee into the loan amount,
Once you miss enough payments, or a missed payment extends long enough, the lender marks the account in default. Typically, default means the lender has determined that your business is incapable of, or unwilling to, repay the loan.
Again, each lender and loan agreement specifies the threshold for when a missed payment results in a default. Failure to make payments or
The SBA Veterans Advantage Loan is a special program that makes 7(a) loans available for veteran-owned businesses. The primary benefit of the Veterans Advantage loan is reduced fees compared to the standard 7(a) loan.
Loan amounts go up to $5 million, but the actual amount you’ll receive depends on your business needs, financials, and credit score.
Entrepreneurs dream of owning a business but starting one from scratch is costly and unproven. Many aspiring business owners become franchisees to realize their vision.
When you buy or open a new franchise, you leverage existing brand awareness and a proven business model. With so many franchises to select from, you might wonder what the most successful franchise is.
Before getting into the definitions, differences, and similarities of C Corporations and S Corporations, let’s talk about what makes a corporation.
When forming a business, it can be a sole proprietorship, limited liability company (LLC), or corporation. When you form a corporation, you file articles of incorporation, and C Corporations are the default status. You can file Form 2553 to change
