adminDepreciation: The value of any asset can be said to depreciate when it loses some of that value in increments over time. Depreciation occurs due to wear and tear. Various methods of depreciation are used by businesses to decrease the recorded value of assets.
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Debt Consolidation: If your small business has several loans with various payments, you might want to consider a business debt consolidation loan. It is a process that lets you combine multiple loans into a single loan. The advantages are possibly reducing the interest rates on the borrowed funds, as well as lowering the total amount you repay each month. Businesses use this tool to help improve cash flow.
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Tax Lien: If your business fails to pay taxes owed to the designated government entity, namely Zimra, you may find your assets seized by the claim of a tax lien. The government cannot only seize your assets for liquidation to resolve the tax debt, but they can also charge you penalties on the amount you owe.
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Loan-to-Value: The LTV comparison is a ratio of the fair-market value of an asset compared to the amount of the loan that will fund it. This is another important number for lenders who need to know if the value of the asset will cover the loan repayment if your business defaults and fails to pay.
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Floating Interest Rate: In contrast to the business finance term and definition fixed rate, the floating interest rate will change with market fluctuations. Also referred to as variable rates or adjustable rates, these amounts may often start out lower than the fixed rate percentages. This makes them more appealing in the short term if the market is trending down.
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