Cash Velocity: How to Calculate and Shorten Your Cash Conversion Cycle by 45 Days If you found value in our article EBITDA vs Cash Flow for Lending: Why CFADS Wins for Debt Decisions, this piece takes the next step. That discussion focused on how EBITDA can overlook the real flow of money through your business....
EBITDA vs Cash Flow for Lending: Why CFADS Wins for Debt Decisions Key Points EBITDA is a flawed metric for lending decisions because it ignores taxes, interest, capital expenditures, and working capital shifts. CFADS (Cash Flow Available for Debt Service) provides a more accurate measure of repayment capacity by reflecting real cash movement. Businesses that...
Debt as a Growth Tool: How Alternative Financing Helps Small Businesses Scale Key Points Traditional bank loans reject a large share of small business applicants, leaving owners without vital capital. Alternative financing for small businesses—such as invoice factoring, purchase order financing, and asset-based lending—offers faster access and more flexibility. Handled properly, debt can act as...
How EBITDA Lost Its Way: The BMI of Business Finance and Why Simplified Metrics Distort Real Health Key Points EBITDA and BMI share the same flaw: both simplify complexity and ignore the real factors that determine health—cash flow in business, metabolism in the body. EBITDA overstates strength by excluding capital needs and timing of payments....
True Cost of Debt Beyond Interest Rates: Structure, Timing, and Cash Flow Risks in Business Loans Low rates don’t always mean low cost. The real risk in borrowing lies in how a loan’s structure aligns—or conflicts—with your cash flow. Key Takeaways Interest rate ≠ true cost. Payment structure and timing determine real affordability. Cash flow...
