The recent economic downturn hit Americans’ net worth hard. “Net worth” is the value of assets (such as homes, bank accounts, and investments) minus debts (such as mortgages, loans, and credit cards). According to the Federal Reserve, Americans’ net worth hit a low of $48.3 trillion during the recent recession, but has since risen 13% to about $55 trillion. (more…)
Posts Tagged ‘asset based finance’
Congress Passes Small Business Act
Small businesses get some tax breaks in a new law just passed by Congress. The Small Business Jobs Act of 2010 extends 50% bonus depreciation for new equipment purchased during 2010. It increases for 2010 and 2011 the first-year expensing limit for new and used business equipment purchases to $500,000, and raises the phase-out limit on expensing to $2 million. (more…)
New Law Raises Insurance Coverage On Bank Accountants
For years, bank accounts were FDIC-insured up to $100,000. Then during the recent financial crisis, the insurance limit was increased to $250,000. But this increase was only temporary; it was scheduled to drop back to $100,000 in 2014. (more…)
Protecting Your Business With Credit Policies And Procedures
If you were in the money lending business would you hand over money to people without arranging a repayment contract with them? It doesn’t sound too smart, but most businesses are in the money lending business in just this way. In effect, by offering credit to your customers, you are providing them with a loan. Companies that lack sound credit policies and procedures take unnecessary risks and can jeopardize their very existence. (more…)
Analyzing Your Company’s Performance Using Financial Ratios
Financial ratios can be helpful tools in understanding a company’s financial health. They are a benchmark by which you can compare your business to industry standards and analyze changes over time. (more…)
Alternative Finance Products – Can They Help You?
With the amount of available credit shrinking in recent times and financial institutions raising lending standards, more businesses are turning to alternative forms of finance to cover cash flow shortages and grow their businesses. Asset-based lending, factoring, invoice discounting, and merchant cash advances are a few alternative forms of finance that are becoming more popular. Although these forms of funding can help companies make it through tough times, business owners and managers need to be aware of their shortcomings.
