Assets & Liabilities:
Frequently Asked Questions
Not sure how lenders weigh what you own against what you owe? We answer the most common questions about assets and liabilities—how they shape your application, influence your terms, and what you can do to put your business in its strongest position.
- Clear, precise answers
- Business-driven guidance
- Effective financial tips
- Actionable Insights
- Cash: The most liquid asset, it includes cash on hand and deposits in banks.
- Accounts Receivable: Amounts that customers owe the company for products or services sold on credit.
- Inventory: This includes raw materials, work-in-process, and finished goods that a company holds.
- Short-term Investments: Also known as marketable securities like treasuries. These are investments that a company plans to convert into cash within a year.
- Prepaid Expenses: These are payments made in advance for services or goods to be received in the future.
- Accounts Payable: Amounts the company owes to suppliers for goods or services purchased on credit.
- Short-term Debt: Loans or other financial obligations that need to be repaid within a year.
- Accrued Liabilities: Expenses that have been incurred but not yet paid. This could include wages, taxes, and other services that have been used but have not yet been billed.
- Unearned Revenue: Payments received in advance for products or services that will be delivered in the future.
- Current Portion of Long-Term Debt: The portion of long-term debts that are due within the next 12 months.
In a competitive business landscape, access to a Business Line of Credit can provide the flexibility and financial support needed to stay ahead, capture new opportunities, and keep your business moving forward.