A Business loan is simply an amount of money that you borrow from banks and/or other finance institutions for business goals (paying for assets, launch a new product etc...) and that you are obliged to repay over an agreed period of time in addition to interest.
However, The harsh reality about business loans is that they are harder to get.
Many banks today have sorted up a list of pre-requisites before applying for a bank loan such as (a stable income, and a decent business plan).
Liquidity or solvency ratios indicate whether or not a company is able to pay its short-term financial obligations.
Financial ratios are much more than just a bunch of numbers thrown into a formula. Quite the contrary, analysts use financial ratios to deduce meaningful relationships between certain values reported on companies’ financial statements.
One set of ratios, that is, internal liquidity ratios, evaluates a company’s short term liabilities, such as accounts payable and [...]
Source of image: http://askconny.com/ufaqs/difference-mortgage-broker-mortgage-banker/
A balance sheet offers an aerial view of a specific business' financial status at any given moment, although it is usually only used at the end of an accounting cycle such as a month, quarter or year.
This may sound similar to an income statement, but where it differs is in the details: a balance sheet is filled with the details of a business' assets, liabilities and equity, whereas an income statement [...]