Preparing for economic downturns is crucial for small businesses to navigate challenges, maintain stability, and emerge stronger on the other side. Here are strategies to help small enterprises to build resilience during economic downturns: 1. Financial Planning:    – Create a Contingency Fund: Save a portion of profits in a contingency fund to cover unexpected...Read More

Short-term and long-term debt are two options businesses have for borrowing money. The main difference between the two is the repayment period. When deciding which type of debt to use, companies should consider the repayment period and the interest rate but understand both options entirely. Long-term debt Also called long-term liabilities, this is any financial...Read More

Dissolving a company, or going out of business is a tough process. Even after a company closes, outstanding debt does not go away. This includes money owed to employees, landlords, suppliers, utilities, service providers, and even banks and private lenders. You can limit your liability by notifying creditors of your closure, but you still need to...Read More

Debt-to-Income (DTI) ratio measures your company’s ability to afford additional debt. This is calculated by dividing your monthly debt payments by your monthly gross income. This number is expressed as a percentage and indicates how effectively you manage your company’s debts and spend money on a monthly basis. The lower the percentage, the easier it...Read More