This column is dedicated to the financial issues facing forging businesses. It provides guidance on financial matters to those who may not have a dedicated CFO on staff and additional financial insight to those who do.
To illustrate this situation, we will discuss the actual story of a small automotive repair and towing business. The business had a regional towing contract with AAA Auto Club, which gave the business top priority on all service calls.
A common concern with business loans is covenant compliance. Does my business loan have covenants? If so, what are the compliance requirements? Smaller loans under $100,000 may not require collateral and are usually free of any covenants. As businesses grow, however, so do their financing needs.
It looks like COVID-19 issues will continue to affect business for the foreseeable future. In our previous column, we introduced a cash-flow management tool. We hope you were able to download the tool and instructions.