Access to Capital

Amortization

Debt amortization is the gradual reduction of debt, over a specific period of time, via a fixed repayment schedule. The payment should be sufficient to pay current interest and to eliminate the debt amount at maturity. Debt amortization plans can be a useful tool to help manage your loans and project your payment schedule.

Accounts Receivable

Accounts receivable (AR) refers to money that customers and other institutions owe your business. Usually receivables are organized by notes, statements, invoices or other written evidence. You should include your receivables on your balance sheet to maintain a record of how money is flowing in and out of your business.

Business Plan

Your business plan is the comprehensive document that outlines everything about your business. The business plan is a living document, meaning that it should be reviewed and updated as your business output and needs change. Usually, the business plan projects your plans, projected debts and revenues, and growth for 3-5 years. The business plan will be required for most loan applications. Learn more about what you might need to collect for a loan application.

Defaults

If you do not pay the principal and/or interest on your loan by the due date in the loan terms, you will default. In the event of a loan default, the lender has the legal recourse to seize any collateral promised in the loan agreement. In the case of a blanket lien, the lender can go after your business assets if your loan becomes delinquent.

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