Negative Pledge Clauses, Explained: Why Your Bank Says You Can't Pledge Assets to Anyone Else
A negative pledge clause bars you from pledging assets to new lenders — breach it and your loan can accelerate. Carve-outs, cures, and negotiation levers.
#business-loans
Business Loans
Explore business loan options, rates, and financing strategies
Cross-Default Clauses, Explained: How One Missed Payment Can Put Every Loan You Have in Default
A cross-default clause turns one missed payment into a default on every loan — the triggers, thresholds, cure periods, and waivers that contain it.
Payment vs. Collection Guaranties, Explained: Why One Lets the Lender Sue You First
A payment guaranty lets the lender sue you first without touching the borrower; a collection guaranty forces it to sue the company first.
Subordination Agreements, Explained: How Junior Lenders Sign Away Priority
A subordination agreement ranks one lender's claim behind another's — lien subordination orders collateral, payment subordination orders cash.
Business Loan Prepayment Penalties, Explained: the SBA 7(a) 5-3-1 Rule, the 504 Declining Penalty, and Yield-Maintenance Math
SBA 7(a) loans charge 5-3-1% on early payoffs in years 1-3; 504 penalties decline over half the term — price yours before you refinance.
Revolving Credit Facilities vs. Term Loans: How Each Works and When Your Business Needs Each
A revolver charges interest only on what you draw and must be renewed; a term loan disburses once and amortizes — match short money to short needs.
Net Operating Income (NOI), Explained: How Rental Revenue Minus Operating Expenses Values a Property
NOI is rental revenue minus operating expenses, before financing, CapEx, and taxes. It sets price via the cap rate and loan size via DSCR.
Secured vs. Unsecured Loans: What Your Collateral Buys You — and What It Risks
Secured loans cost roughly half as much as unsecured ones — but the lender can seize your collateral and sue for any shortfall.
Callable Debt and Covenant Violations, Explained: When Your Long-Term Loan Lands in Current Liabilities
A covenant breach at the balance sheet date makes long-term debt callable — and callable means current, even if the lender never demands payment.
Financial Leverage, Explained: How Debt Magnifies Your Returns and Your Losses
The degree of financial leverage equals EBIT divided by EBT: a DFL of 2 turns a 10% operating dip into a 20% earnings fall.
Financial Statement Footnotes, Explained: What the Notes Reveal That the Numbers Hide
Footnotes disclose the policies, contingencies, and related-party deals behind your numbers — lenders read them before approving your loan.
Single-Step vs. Multi-Step Income Statements, Explained: How Format Choice Changes What Lenders See
Single-step nets everything in one subtraction; multi-step shows gross profit and operating income — the subtotals lenders read to judge your core business.