Some Basic Ideas On Recognising Critical Factors In Small Business Lending

Gross debt is the total of all the debt obligations of the business. In this guzzle article, we tell you more about working capital, and how it can impact your business. Taxable income is the income earned by an individual or a business entity on which the tax liability is decided. Order of liquidity is a format for preparing the balance sheet where all items on the asset side of the balance sheet are listed in descending order of liquidity. Other income is the income derived from sources other than the main activity of the business. Basis means the starting point for calculating a variety of variables, such as profit, loss, depreciation, amortization, etc. Natural classification of costs classifies the cost based on the nature of the cost item.

Refinance means clearing the current loan with the proceeds of a new one and using the same property for collateral. PBX is the acronym for Profit Before Taxes. Negative Cash flow is when the cash outflow exceeds the cash inflow. During periods of economic prosperity it is easier to raise money by issuing bonds. Process costing is the costing, which is done on the various process of the business to find out the cost of each process.