The Importance of Knowing Your Debt Service Coverage Ratio

Applying for a small business loan is a lot of work. It takes time and effort to research options, compile paperwork, fill out forms, and do everything else that goes into each application—especially when it’s not totally clear how standards vary from lender to lender!

With so much involved and so much at stake, you don’t want to be blindly filling out multiple applications and hoping your guess work pays off—so it’s important to make sure you check the qualification standards of each lender before you fill out their loan application. By knowing what each individual lender is looking for, you can increase your chances of being approved.

When you’re doing your research, one of the main criteria you’ll see pop up time and time again is your debt-service coverage ratio. Not sure what that is, how to calculate it, or why lenders care about it so much? We’ll explain. (more…)


Destroying Your Business Debt in 3 Easy Steps

One of the top priorities for business owners should be paying down debt quickly and efficiently. Eliminating debt will cut your expenses, increase your profits, and allow you to reinvest in your business to generate higher future sales. It also frees up credit you may need later for future investments.

In order to crush your debt quickly, you need to have a plan to make sure you aren’t just paying your bills, but you’re eliminating debt in the most effective way possible. (more…)


5 Ways to Make Your Company Go Bust

businessYou’ve probably know what you should do to make your business a success but do you know what you shouldn’t do? No one wants their business to fail or fall into financial difficulty so it’s important to ensure you avoid the traps before it’s too late. Following the five pointers below is a sure-fire way to put your company out of business.

1. Never change

If you’re unfamiliar with the term ‘change’, then you’re heading for trouble. With technology and consumer markets changing all the time, it’s crucial to keep up so you know exactly what your target market wants. This helps you stay one step ahead of competitors and ensures you plan for the future. Stay focused by keeping in mind business goals and strategies to ensure your business evolves. Ever heard of that saying, ‘failing to prepare is preparing to fail’?

Don’t forget to regularly update the company’s website, blogs, social media channels and overall design. If your website still looks like it did in 1999, then to many visitors, it will look outdated and off-putting, regardless of how great your products or services are.



4 Recovery and Restructuring Solutions Used By Small Businesses

By Keith Tully

In some situations a bit of creativity will be needed to facilitate a turnaround and get your company back to operating in a profitable manner. However, more often than not you won’t need to be an innovator to save your business, you’ll just need to consider some of the commonly overlooked recovery and restructuring options that are applicable and readily available:

1. Using Assets as Leverage to Obtain Financing

Even if you have poor credit you may be able to obtain financial assistance by using some of your assets (i.e. – equipment, inventory, real estate, etc.) as collateral in obtaining approval for a secured loan. However if you were to default on such an agreement then the lender would potentially have the right to seize the assets you used as a security, so keep that in mind before you put your home on the line.



How Small Business Owners Can Achieve Debt Stability Without CARD Act Protections

Odysseas Papadimitriou, CEO of

Small business owners are basically living in the dark ages.  No, I’m not referring to the aversion many mom and pop stores seemingly have to the power of web-based marketing or even how tough it is to become successful in the currently gloomy economic climate.  Rather, I’m talking about the fact that politicians and financial regulators don’t seem to think that small business owners are worthy of the same rights and protections as the general consumer population.

While the CARD Act of 2009 has proven to be a huge success – adding transparency and fairness to the personal finance industry – it doesn’t apply to credit cards branded for business use.  That’s alright, you might be thinking; small business credit cards are just different, right?



Should You Pay Down Your Debt or Invest in Your Business?

You want to pay down your debt, but your income has been about the same amount for the past two years. Ideally, you’d like to redesign your website, hire an employee to assist you at your business, buy a MacBook Pro, and begin establishing a social media presence. But your credit cards and any other outside debt are killin’ you. Much of this may be linked back to the fact that you could be spending around $200 a month in additional interest which could be going towards trademarking a logo design or buying some software you really need.

You feel stuck because you are not sure what to do – pay down the debt or invest in your biz? If you rack up more debt, you will just dig a bigger hole for yourself. If you make the minimum payment on your debt, you won’t chip away at reducing it. Total deer in the headlights moment. (more…)