Tech Tip * November 24, 2015

Budgeting for Damaged Credit

Happy Pre-Turkey Day! While we have talked in this month’s tips about setting your technology budget for 2016, what happens if your available capital is limited and your credit is damaged? Your business STILL has to run, right? So what can you do besides cry in your yams on Thursday?
There was an interesting article by Mary Ellen Biery on Credit.com about what to do when denied business credit. In it, she mentions a few reasons that companies are turned down when it comes to business loans, and five financial metrics you must review and clean up to get and stay credit worthy:
  1. Cash to Assets
  2. EBITDA to Assets
  3. Debt Service Coverage Ratio
  4. Liabilities to Assets
  5. Net Income to Sales
If you are as lost as I am, you can read more HERE.¬†Hey, I’m surely not an accountant nor an economist, but if it were MY organization, I’d be checking with a financial professional sooner rather than later!

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