MIRR, Explained: How the Modified Internal Rate of Return Fixes IRR's Reinvestment Fantasy
MIRR fixes IRR by compounding interim cash at a realistic reinvestment rate — a 21.7% IRR becomes an honest 17.8% you can actually earn.
#financing
Financing
Business financing options and funding strategies
Preferred Equity in Real Estate Deals, Explained: How the Pref Sits Between Senior Debt and Common Equity
Preferred equity sits between senior debt and common equity: a fixed 10–18% pref paid before common, with control rights but no foreclosure.
Stock Issuance and Offering Costs, Explained: Why Your IPO Fees Reduce Paid-In Capital Instead of Hitting Your P&L
Equity offering costs reduce additional paid-in capital, never earnings; debt issuance costs amortize into interest expense. Entries, authorities, and mistakes.
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.
Recapitalizations, Explained: How Companies Reshape Debt and Equity Without Changing the Business
A recapitalization swaps debt for equity — or equity for debt — to cut risk, fund a buyout, or take cash out without selling the company.
Equity Multiple, Explained: How Total Distributions Over Invested Equity Measures a Deal's Absolute Return
Equity multiple is total cash distributions divided by total equity invested — 2.0x means you doubled your money, with no adjustment for time or fees.
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.
Internal Rate of Return (IRR), Explained: The Discount Rate That Zeros Out NPV, the Hurdle-Rate Rule, and the Traps
IRR is the discount rate that zeroes a project's NPV — accept only above your cost of capital, and cross-check high readings with MIRR.
Pre-Money vs. Post-Money Valuation: The Two Numbers That Decide What Your Startup Is Worth
Post-money equals pre-money plus the investment — and which number a term sheet quotes decides whether a $1M check buys 20% or 25% of your startup.
Equipment Financing Agreements (EFAs): Ownership From Day One, Fixed Payments, and Section 179 Deductions
An EFA is an installment sale — you own the equipment from day one, repay fixed payments with no stated interest rate, and deduct it under IRS Section 179.
SBA Microloans, Explained: How to Borrow Up to $50,000 When Banks Say Your Loan Is Too Small
SBA Microloans lend up to $50,000 through nonprofit intermediaries at 8–13% — the average loan is about $13,000, and free business coaching comes with it.
SBA Export Loans Explained: Export Express, Export Working Capital, and International Trade Loans
Export Express lends to $500,000, EWCP and International Trade Loans to $5 million — all with a 90% SBA guaranty. Match the program to your order.