How to calculate debt service payments
Debt service is the periodic (usually annual) payment of accrued interest and part of the principal amount of the debt. When applying for a loan, companies are required to disclose…

Continue reading →

Operating lever
Typically, business owners are interested in two interrelated indicators: revenue and profit. Revenue shows how much the company has earned, and profit shows how much is left after deducting expenses.…

Continue reading →

Search for investors for business
Experienced businessmen joke that finding an investor is like finding a soul mate. Of course, if there are common ways, but it also happens that fate seems to bring you…

...

How to become rich at a young age
If a person wants to become rich, then he will have to work hard, plan things wisely and put aside savings at any age, especially in his youth (of course,…

Continue reading →

type of activity

Types of cash flows

Three types of cash flows
It is customary for entrepreneurs to divide the cash flow into receipts and disposals and compare: if the amount of expenses is greater than the amount of receipts, then the month is unsuccessful, and if vice versa, everything is fine. This is the fastest way to assess the state of affairs in a business. However, it is not the most accurate, since a lot depends on what the money was enough for.

For example, in one month they overpaid for the maintenance of the office – they updated the form of employees, but at the end of the month there was not enough money for basic expenses – salaries and rent. Continue reading

Bank selection
Choosing a bank is one of the most responsible decisions. A lot can depend on the stability of a credit institution. Of course, it is quite difficult for an average…

...

How to become rich at a young age
If a person wants to become rich, then he will have to work hard, plan things wisely and put aside savings at any age, especially in his youth (of course,…

...

What is a debit and credit balance
“Debit and credit” is perhaps the most famous accounting phrase that even those who are far from the topic of finance know. But do you understand what it is, and…

...