Time to understand this business:
Pull recurring cashflow
Spot red flags and ask questions
Dig deeper when necessary
Look for more loan opportunities
- Green Legos, Six Ns and a Map
- Types of Business Entities
- Cash vs Accrual Basis
- Debt, Debt Ratios and Debt Shortcuts
- 1040 C 1 Basics
A playful way to learn
How to approach any tax return
Find what you need
Make sure you have all of the relevant forms
Keep track as you go
Go to Green Legos Module
Covering Seven Types of Entities
Advantages and disadvantages of each
Forms filed and which of them have choices
Risk exposure of owners and how that mitigates lender risk
How owners get paid (you might be surprised)
An accounting difference that makes a difference
What is the difference between cash and accrual basis?
How does it impact your impression of the business?
Where do you look to see which they are using?
Which is best for the business?
The key to the loan decision
Where to get debt information
How to calculate debt ratios
Which debt ratios to use
When to use shortcuts and when they won’t work
More than just an add-back.
Definition and methods
Treatment on financial statements and tax returns
Impact on gain/loss on disposal of assets
Form 4562 clues to understand the business
Basics first. What can a quick look tell you?
What entities file in a “C”
Quick review or thorough analysis?
How your type of lending impacts your approach
Where to look to get a snapshot of the business
What lenders are saying
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