Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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The debt-to-equity ratio compares what a business owes to what it owns net of liabilities, measuring how much of the....
The debt service coverage ratio measures whether a business generates enough operating income to cover its debt payments, and it....
Debt covenants are the contractual conditions attached to a loan that the borrower must maintain throughout the lending relationship, and....
A business credit score is a numerical rating of a company’s creditworthiness based on its payment history, debt levels, and....
A credit facility is a formal borrowing arrangement between a business and a lender that sets the maximum amount available,....
A covenant breach occurs when a borrower fails to meet a condition in a loan agreement, giving the lender the....
A commercial mortgage is a loan secured against commercial real estate, such as an office, warehouse, retail, or industrial property,....
Cash flow lending is financing based on your business’s ability to generate enough cash flow to service debt, rather than....
The CSBFP is a federal government-backed loan program that helps small businesses access financing for equipment, leasehold improvements, and commercial....
Bridge financing is short-term funding used to cover a defined gap between now and a known future event, such as....
The BDC is a federal Crown corporation that provides financing, advisory services, and venture capital to Canadian businesses, with a....
Asset-based lending is a form of business financing where the loan is structured around the value of specific assets, receivables,....