What is collateralization? Collateralization is using a valuable asset as collateral to secure a loan. In this type of loan arrangement, the borrower pledges an asset to the lender, and in case of a loan default, the lender has the right to take possession of the asset and sell it to recover the loan’s outstanding…
What is a business debit card? A debit card for business is a form of payment that allows users to make purchases at point-of-sale using their business checking account or savings account. A debit card is linked directly to the user’s business checking account or savings account, which is then converted into cash. Business debit…
Business Contingency Plan No one likes to think about disasters, but they can and do happen. That’s why having a contingency plan for your business is important. The definition of contingency planning is a course of action you will take in the event of a disaster. It should cover everything from natural disasters to power…
Separating Your Personal and Business Finances You can separate your personal and business finances by using several options, including splitting the difference between what you owe to cover your personal and business expenses. You could also use an online service like Mint to track your transactions, making it easier for you to stay on top…
Importance of Government Regulations All companies must adhere to federal, state, and local statutes, necessitating government regulations on business. Regulatory bodies enforce these regulations at the legislative level. Some of these regulations impact how a company reports their income or pays taxes, while others regulate how they dispose of their excess materials or waste. Regulations…
What are debit card processing fees? Debit card processing fees refer to the fees charged by payment processors, banks, and card companies (Visa, Mastercard, etc.) when a customer pays with a debit card. These fees typically include the following: These fees may vary depending on the size of the bank that issued the card, the…
What is marginal profit? Marginal profit is a concept in microeconomics that refers to the increase in a company’s profit from selling one additional unit. It is expressed as the difference between marginal revenue (the increase in revenue from one additional unit) and marginal cost (the increase in the cost of producing one additional unit)….
Effective Business Expense Management If you are a business owner, you know that effective expense management is crucial to the success of your enterprise. There are many ways to cut costs and save money, but it can be difficult to know where to start. That’s why we’ve put together this helpful guide with some of…
