The EBITDA Illusion: Why It Misleads Small Business Loan Decisions (And What Lenders Really Check) Profit doesn’t pay the bills—cash does. Here’s why EBITDA often tricks business owners into overborrowing and what lenders actually examine. Key Takeaways EBITDA ≠ Cash Flow: EBITDA reflects accounting profit, not actual cash available for debt payments. Cash Flow Drives...
Capital Source Funds 18 Deals Totaling $2.9 Million in September 2025 Chicago, October 10, 2025 — Capital Source, through its Private Credit Division, has announced the successful funding of 18 transactions totaling $2.9 million across North America for September 2025. These deals reflect the firm’s ongoing commitment to providing flexible financing solutions that empower small...
Smart Financing Boosts Your Working Capital Cycle Beyond APR Key Takeaways APR Isn’t Everything: It overlooks timing, opportunity costs, and the strength of your working capital cycle. Borrowing for Growth: Every dollar financed should fuel your working capital cycle, boosting net working capital by 20–30% through faster cash conversion. Opportunity Costs Hurt: Delays from slow...
🎧 Listen to the Expert Dialogue: Financial Leverage – The Debt to Assets Ratio Demystified Key Points The debt to assets ratio reveals how much of a business’s assets are debt-financed. High ratios (0.7+) increase vulnerability — especially if slow SBA funding forces reliance on interim debt. Delays can drive missed opportunities (e.g., $300K+ lost...
Strategic Borrowing – Turning Debt into a Growth Engine Key Points Debt should accelerate cash flow; DSCR measures true debt capacity. The working capital cycle (DIO + DSO – DPO) drives liquidity; shorter cycles support more debt. Speed of capital often outweighs cost of capital — SBA’s low APR can arrive too late, while fast...
