Access to Capital

The Small Business Administration (SBA) does not make loans itself. Instead, it guarantees loans offered to small businesses by banks and other lending institutions. Learn more about the SBA and SBA loans.

Fixed costs in your business are the regular payments you make that generally cost the same for each payment, regardless of your sales. These fixed costs are sometimes referred to as "overhead." Examples of fixed costs include rent, utilities, and taxes.

If the total debt you owe exceeds your business profits, your business is considered to have negative net worth.

Your business' net worth, or equity, is equal to all assets minus all liabilities (including debts and obligations).

Unsecured loans typically don't require collateral. Because these loans are not "secured" by collateral, they are usually more expensive and are usually only available to borrowers with high credit scores.

A business is considered solvent if it has the appropriate financial abilities to meet any obligations or liabilities and continue to break even or make profit.

The term "size standard" describes the definition of a small business. A business is considered "small" if it meets or is below an established "size standard." Check loan terms to make sure that your business qualifies as a small business.

A short term loan typically has a repayment stipulation of one year or less.

Secured credit refers to loans your business can qualify for by promising collateral, like equipment or real estate. If you default on a secured loan, the collateral and other property can be seized by the lender to satisfy any part of the loan that has not been paid. Loans can also be secured by the lenders putting a blanket lien on your business.

Revolving credit is a type of account that allows the borrower to draw funds as needed. Credit cards are considered a form of revolving credit.