What are IBAN accounts? IBAN or International Bank Account Number is basically having a global bank account. It is created internationally to identify the bank accounts across national borders and overseas countries. This is an important account because whenever you make an international payment, it is compulsory to have the IBAN. It contains both a…
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This article compares and contrasts the responsibilities of a CFO versus a Controller, Accountant or Bookkeeper. Many business owners do not understand the differences between the roles and the value a CFO can bring to the business. Additionally, many business owners do not feel they can afford a CFO, however that is where a part…
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Creating clear and accurate financial forecasts for your company during the start-up stage is crucial. Most business owners complain that building accurate financial projects is time-consuming, and that time could be used generating sales rather planning. However, few investors will invest in your company if don’t have clear projections. Correct financial projections will help you…
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1. During the past decade, the size of seed rounds has remained stagnant and number of deals have decreased. To the untrained eye, it seems that there is more competition for seed dollars. Below the surface, however, startups are recycling founders experience. The reason why the number of deals has decreased is that teams are…
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In our home we try to get the children to help out. One day our youngest son came into the living room and asked, “Does anyone want a cup of coffee?” “Yes, please!” we said. He replied, “What kind of coffee do you want? Capitated or decapitated?” This old blog article about the commercial loan…
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The Big Boys, the ladies and men who make and arrange the really huge commercial real estate loans, have their own specialized language. You can think of it as advanced commercial mortgage-ese. Today we’ll discuss one of their underwriting terms, mark-to-market (MTM) accounting in real estate. Mark-to-market accounting assigns a value to real estate assets based…
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A CLE CLO stands for a commercial real estate Collateralized Loan Obligation, and it is a security that is backed by a pool of commercial loans. The individual borrowers make their payments to the issuer – the company that made and pooled the loans – and then the issuer makes payments to the investors who invested…
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Every year hundreds of commercial property owners get conned out of millions of dollars by advance fee scammers. An advance fee scammer is a criminal pretending to be a commercial mortgage lender. He will issue a very fancy-looking conditional commitment letter, which will call for some huge “good faith deposit” or “third-party report fee”. Once…
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In negotiating an income property loan, the size of loan the borrower can obtain is usually more of a sticking point than the rate or the loan fee. Since income property loan sizes are generally limited by the debt service coverage ratio (i.e., cash flow), rather than the loan-to-value ratio, the operating expense figure that…
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Large scale businesses may be better of working with a private equity firm. Debt capital has principal payments that are required on a monthly basis, whereas equity financing does not have these strings attached. In some instances, you may be able to sell preferred shares of your company is going to give up a controlling…
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