by Wesley John | Aug 11, 2014 | Banking, Business, Finance, Risk
Many a USA based small business has received a request to sell their products to a foreign company. Often they are reluctant to do so because they are afraid of not getting paid. To mitigate the risk they invariably ask the buyer to pay up front. But, with a Letter of...
by Wesley John | Jul 14, 2014 | Banking, Business, Finance, Risk
As a banker, a great many of the loans I do are for those looking to purchase real estate – their own office building, warehouse or industrial facility for example. The most common question is whether they can afford it, not whether it makes good financial sense...
by Wesley John | Jul 6, 2014 | Banking, Business, Finance, M&A, Metrics
This Return On assets post is the fifth post in a series of articles about financial ratios. Which Company is Worth More? Let us assume you are interested in purchasing a company that makes bicycles here in the USA. You have narrowed your search to two companies....
by Wesley John | Jul 1, 2014 | Banking, Business, Finance, Metrics, Risk
This is the fourth post in a series of articles about financial ratios. In evaluating any borrower for a loan or lease request, one of the financial ratios that lenders run is a Debt Service Coverage Ratio (DSCR or sometimes DSC) to determine if the loan can be...
by Wesley John | Jun 23, 2014 | Banking, Business, Finance, Metrics
When I was a young MBA student, one of my professors had a saying that has stuck with me ever since. “You can live without sales, you cannot live without cash flow” he used to say. This saying has been proven again and again to me in the course of my career as...
by Wesley John | Jun 16, 2014 | Business, Finance, Metrics, Risk
This is the third part of our series on ratios and what they mean to your business. Inventory turns are the amount of times in a fiscal year that you sell your complete inventory. The ratio is normally calculated by dividing sales by inventory on the year end balance...
