#business-loans
Explore business loan options, rates, and financing strategies
DSCR equals net operating income divided by total debt service. Most conventional lenders require at least 1.25, SBA programs 1.1 to 1.25, and a ratio below 1.0 is an automatic decline. Here is how to calculate yours, the mistakes that sink applications, and how to improve a weak ratio before you apply.
Learn the fixed charge coverage ratio formula with a worked example, how FCCR differs from DSCR, and how credit agreements define rent, taxes, and
The Rule of 78 front-loads loan interest so a lender on a 48-month, $8,000-interest equipment loan has earned about 74% of that interest by month 24 — gutting the savings from early payoff. Here's how precomputed loans work, where they're still legal under 15 U.S.C. § 1615, and how to spot one before you sign.
The times interest earned (TIE) ratio — EBIT divided by interest expense — tells lenders how many times over your operating earnings cover your interest bill. Most lenders want at least 2.5–3.0; below 1.5 signals high default risk. Here's how to calculate it, where it falls short, and how to improve it before a loan application.
The CFPB's nationwide medical debt credit reporting ban was vacated by a Texas federal court in July 2025, leaving protection to 15 state laws and the bureaus' voluntary policies — paid debts, collections under $500, and a 365-day grace period stay off reports everywhere. Here's what still applies in your state and how to keep a medical collection from raising your business loan rate.
The Fed held rates at 3.50%-3.75% for a fourth consecutive meeting in June 2026, keeping the prime rate at 6.75% and SBA 7(a) variable rates near 9-11.5% APR, so refinancing into a fixed rate can pay off once you account for SBA prepayment penalties (5%/3%/1% in years one through three) and lender fees.
Loan covenants—DSCR, fixed charge coverage, tangible net worth, and leverage limits—can put a small business borrower in default while every payment is current. A practical breakdown of affirmative, negative, and financial covenants, cure periods, waiver requests, and what to negotiate before signing a credit agreement.
Calculate customer revenue shares with a six-customer example, understand the 10% disclosure threshold, and keep receivables concentration separate.
A UCC-1 financing statement lasts five years and can block future financing if a lender forgets to file a UCC-3 termination after payoff. This guide covers specific vs. blanket liens, how to search your state's records, and how to force a termination under Article 9.
Learn how loan amortization works, how to calculate your monthly payments, read an amortization schedule, and choose the right loan structure for your small business. Includes current 2026 rates and practical examples.
