Prosper Strategic Finance, llc

Entries for the ‘Financial Tools’ Category

Distinguishing Between Business and Personal Credit Scores

Good credit is an important aspect in both your personal life and in your business. Many people often assume that they are one in the same, but they are not.  There are different factors considered when it comes to figuring out your business versus your personal credit score. The organizations that report and monitor personal credit are [...]

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Liquidity: Measure It

With any business, especially during challenging economic times, it is important to understand what the current ratio is and how to use it. The current ratio is considered a liquidity ratio which measures a company’s ability to pay short-term loans. The formula for this liquidity ratio is: current assets over current liabilities. The result of [...]

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Benchmarking Can Be Beneficial To Your Business

When you own or are starting a business, you need to implement benchmarking (aka Best Practices). This process helps to determine how your business is performing against your internal standards as well as your competition. Doing so will help you assess how effective or ineffective your business is performing in operations, customer services, sales, or [...]

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Make Your Point With Benchmarking

A benchmark is an internal or external measure of how your business is performing. Benchmarking is also described as Best Practices and/or Ratios. Benchmarking is the most effective way to monitor and track the progress of how your business is doing, both good and bad. When you take a look at how you can make [...]

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NPV vs Payback Method

In my last two posts I discussed the financial tool, Net Present Value (NPV) in detail (NPV and NPV Example). However, often times the Payback Period method is used to evaluate a purchase or expansion project. The difference between NPV and the Payback Method is that the Payback Method doesn’t discount the future cash savings/cash [...]

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NPV Example

In my last blog post I discussed a financial tool, Net Present Value (NPV). In this post I’ll use an example of how NPV works. You can refer back to this information whenever you need to make a large purchase decision. In order to perform the calculation you will need to know: 1. The discount [...]

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Before You Buy That New Piece of Equipment

They are predicting a very slow economic recovery. But that doesn’t mean you should wait to make purchasing decisions for your business. On the contrary, you should buy that asset — if you do so wisely. It can be challenging to determine whether or not you should make an investment. You make every effort to [...]

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