Exit Promise


Sole Proprietorship vs LLC [0.09]

Posted on Aug. 16, 2017, 2:04 p.m. by Exit Promise @ [source]

Understanding the differences between a sole proprietorship and an LLC (Limited Liability Company) is essential for any business owner – but especially important for a business owner trying to decide the best structure for their startup. Understanding the pros and cons of a sole proprietorship versus a Single Member LLC can be confusing, so we’ve created a simplified comparison in an effort to make it easy to decide which structure is best for your business.

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LLC vs S Corp [0.07]

Posted on July 31, 2017, 11 a.m. by Exit Promise @ [source]

Your business’s corporate structure will significantly impact a number of issues – including exposure to liability, financing and growth, the number of shareholders, the rate and manner in which you and your business are taxed, and general business operations. Here, we’ll break down the drawbacks and benefits of each structure in an effort to help you make the right choice for your business.

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SaaS Business Model Magic & Mythology [0.12]

Posted on July 26, 2017, 8:19 p.m. by Exit Promise @ [source]

As consumers, we’ve become increasingly familiar with the notion of paying a monthly fee for various business and lifestyle services.

Those of us in finance are familiar with annuities.

accounting business capital financial income present revenue SaaS software Subscription


EBITDA Margin and Adjusted EBITDA Margin [0.05]

Posted on June 5, 2017, 1:05 p.m. by Exit Promise @ [source]

EBITDA Margin or Earnings Before Interest, Taxes, Depreciation, and Amortization Margin is a measurement of a company’s “top line” operating profitability expressed as a percentage of its total revenue.

EBITDA Margin therefore provides outside investors, business owners, and potential buyers with a clear view of the business’s operating profitability and cash flow, since the valuation excludes interest, taxes, depreciation, and amortization.

Amortization business companies Depreciation EBITDA Margin expense interest operating profitability Taxes


Business Bad Debt [-0.26]

Posted on May 17, 2017, 9:50 p.m. by Exit Promise @ [source]

Business bad debt refers to any debt created or acquired in a trade or business (or closely related to a trade or business) that becomes partially or completely worthless and can not be collected.

Business bad debt is the result of a customer, another business, or an individual who cannot or refuses to pay their debt obligation to your business for goods and services received or rents owed.

debt expense income Note permitted receivable sale transaction uncollectible written


Business Risks in Your Relationships [0.09]

Posted on May 11, 2017, 11 a.m. by Exit Promise @ [source]

How could there be business risks in your relationships? For most business owners who’ve started a business from scratch, the notion of regarding as risky the many positive relationships they’ve built over the years with customers, vendors, and even employees is indeed a difficult concept to wrap their head around.

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Business Debt Schedule [0.13]

Posted on May 8, 2017, 1:45 p.m. by Exit Promise @ [source]

A business debt schedule is a tool that helps businesses review, assess, and visualize debts. A debt schedule allows businesses to make strategic decisions about paying off debt, acquiring new debt, or creating long-term projections for investors and creditors.

accounts accrued balance business debt include investors payable schedule Taxes


Business Debt Consolidation [0.12]

Posted on April 17, 2017, 7:51 p.m. by Exit Promise @ [source]

Business debt consolidation refers to the practice of taking out a new loan to pay off any number of other business debts (generally unsecured debts).

For small and medium sized business owners, it may be particularly easy to find that your business has taken on more loans than you’re comfortable having.

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Book Value [0.18]

Posted on Feb. 27, 2017, 7:27 p.m. by Exit Promise @ [source]

Book Value is defined as the total value of a company if it were to liquidate its assets and pay back its liabilities, or the value of the company according to the financial statement.

The book value is calculated by subtracting intangible assets (like patents) and liabilities (including debt, accounts payable, and notes payable) from the value of the company’s total assets (including any land, equipment, and real estate).

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MVIC (Market Value of Invested Capital) [0.05]

Posted on Feb. 23, 2017, 2:17 a.m. by Exit Promise @ [source]

What is Invested Capital?

MVIC (Market Value of Invested Capital) is the amount of money raised by issuing securities to shareholders and bondholders, and typically includes total debt and any capital lease obligations.

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Net Equity Value [0.05]

Posted on Feb. 14, 2017, 9:47 p.m. by Exit Promise @ [source]

Net equity value is the fair market value of a business’s assets minus its liabilities. The net equity value is used to determine a business’s net worth – or the funds that would be left over and available to shareholders if all liabilities and debts were paid off.

assets bank business capital inventory liabilities loan net net equity worth


Discount Rate [0.05]

Posted on Feb. 6, 2017, 6 p.m. by Exit Promise @ [source]

The discount rate can be defined in several ways. For purposes of this post, the discount rate will be defined as it relates to small and medium sized businesses (SMBs) and the Discounted Cash Flow (DCF) valuation method.

business DCF discount flow greater investment projected purposes rate valuation


Once you’ve successfully assessed your financial needs for a business loan, you’ll want to follow these guidelines to determine what, if any capital funding you may need, and the best type of business loan for your business.

What are the best reasons for a small business to pursue funding?

business capital credit funds loan managed pay short term Type


How to Assess Your Need for a Business Loan [0.22]

Posted on Jan. 30, 2017, 5:47 p.m. by Exit Promise @ [source]

As a small business, it is imperative that you understand your financial needs. Knowing your projected annual expenses, having a business plan in place, and assessing your need for funding sets the foundation for a profitable and successful business venture.

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