Category Archives: cash flow

What on earth is a coverage ratio in financing with an SBA Loan?

When dealing with financing of various sorts you will come across the term “coverage ratio”. It my be in the context of “Interest coverage ratio” ¬†or “debt coverage ratio” or some other similar nomenclature. Here’s the basic concept of a coverage ratio. The coverage ratio is designed to determine what margin for error there is […]

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30 Second Biz Lesson – Bad Debts!

You better get paid for what you sell or you’re going to be doing a lot of catching up. For other Business information form interesting people visit TheHub click here.

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Small Business Accounting Cash vs Accrual Made Easy

Small business accounting – Cash vs Accrual – Does it matter? Yes it Does. It is not uncommon for us to receive financial information from business owners where for instance the tax returns are done on a cash basis and the financials are done on accrual basis. Often they are technically both correct but just […]

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