What is the Working Capital Ratio?
The working capital ratio, also called the current ratio, divides current assets by current liabilities to show whether the business has enough […]
What is a Working Capital Facility?
A working capital facility is a credit arrangement specifically structured to fund the short-term operational cycle of a business, bridging the timing […]
What is the difference between a Term Loan and Revolving Credit?
A term loan advances a fixed amount repaid on a set schedule; revolving credit provides a limit that can be drawn, repaid, […]
What is Subordinated Debt?
Subordinated debt sits behind senior debt in the repayment hierarchy, meaning in a default or insolvency, senior lenders are repaid first, and […]
What is Solvency?
Solvency is the ability of a business to meet its financial obligations as they fall due, the threshold between a business that […]
What is Security and Collateral?
Security is the legal claim a lender takes over specific assets to protect its position if the borrower defaults; collateral is the […]
What is Refinancing?
Refinancing is replacing an existing loan with a new one, typically to access better terms, extend the repayment period, consolidate debt, or […]
What is the Personal Property Security Act (PPSA)?
The PPSA is provincial legislation that governs how security interests in personal property, equipment, receivables, and inventory are created, registered, and enforced […]
What is a Personal Guarantee?
A personal guarantee is a commitment by a business owner to repay a corporate debt personally if the business cannot, making the […]
What is an Operating Line of Credit?
An operating line of credit is a revolving facility that allows a business to borrow up to a set limit, repay, and […]
What is the difference between a Compilation, a Review, and an Audit?
These are three levels of accountant engagement for financial statements, each offering progressively more assurance to external users and required in different […]
What is Mezzanine Financing?
Mezzanine financing sits between senior debt and equity in a company’s capital structure, offering more capital than a bank will provide in […]