Access to Capital
Guaranteed Loan (SBA)
Fixed Costs
Fixed costs in your business are the regular payments you make that generally cost the same for each payment, regardless of your sales. These fixed costs are sometimes referred to as "overhead." Examples of fixed costs include rent, utilities, and taxes.
Negative Net Worth
If the total debt you owe exceeds your business profits, your business is considered to have negative net worth.
Net Worth
Your business' net worth, or equity, is equal to all assets minus all liabilities (including debts and obligations).
Unsecured Loans
Unsecured loans typically don't require collateral. Because these loans are not "secured" by collateral, they are usually more expensive and are usually only available to borrowers with high credit scores.
Solvency
A business is considered solvent if it has the appropriate financial abilities to meet any obligations or liabilities and continue to break even or make profit.
Size Standards
The term "size standard" describes the definition of a small business. A business is considered "small" if it meets or is below an established "size standard." Check loan terms to make sure that your business qualifies as a small business.
Short Term
A short term loan typically has a repayment stipulation of one year or less.
Secured Loans
Secured credit refers to loans your business can qualify for by promising collateral, like equipment or real estate. If you default on a secured loan, the collateral and other property can be seized by the lender to satisfy any part of the loan that has not been paid. Loans can also be secured by the lenders putting a blanket lien on your business.