The About.com Business Finance website posted a lot of blog posts in 2012. Some of them were your favorites. It is interesting to go back over what topics you found most interesting and we will focus more on these topics in the future.
The most popular blog post of 2012 was the one promoting the discussion forum for the Business Finance discussion boards. Of course, discussion forums are really popular on the internet and I would really like to get our discussion forum on Business Finance going better than it is. Students can use the discussion forum for their purposes in studying. Business people can use the discussion forum to solve and discuss problems in their businesses. Check out the discussion forum here on Business Finance and let's get the conversation going!
Working capital is just your current assets. If you have liabilities or debt, it is your current assets minus current liabilities. All business firms need working capital to survive because it pays for the firm's inventory and short-term needs and debt. You don't want to take out an intermediate or long-term business loan for your short-term needs. Instead, you match your short-term needs with a short-term business loan.
Your business firm has to be creditworthy in order to qualify for any type of loan. For working capital needs, a short-term loan is best because the maturity of the loan matches the maturity of the need of your firm. For small business firms or start-ups in the current business climate, the best source of business loans is a local or regional bank or a credit union.
The fiscal cliff negotiations between Congress and the President has been one of the biggest news items during the last half of 2012. The relevant issues have been the end of Obama's payroll tax holiday, the end of the Bush tax cuts, unemployment insurance, automatic spending cuts due to kick in at the first of 2013, and other important issues. In order to read the issues in play, check out the article associated with the blog post.
In the current economy, small business bank loans are hard to get. One thing you will almost certainly face in your loan contract is some type of restrictive bank loan covenant, as banks got burned pretty badly during the Great Recession of 2008. They are trying to cover all their bases with small businesses at this point in time.
Many readers seemed interested in reading about restrictive loan covenants in this article. A loan covenant is a statement in the loan contract saying that the business can or cannot do something while they are repaying the loan. An example might be that a business cannot engage in merger or acquisition activity while repaying the loan. Take a look at the blog post and article to better understand loan covenants.
Last, but certainly not least, is my annual list of the most potentially profitable businesses to start in 2012. All of these still apply in 2013. Especially since the Great Recession, many folks have thought about starting their own business and have successfully done so. This is a blog post pointing you to a list of hot businesses you can start with a reasonably low (or possibly very low) investment that could really turn into a profitable business. Check out this list! It could lead you to a valuable business investment!