Small business guide
A balance sheet is a snapshot of the business on one day. It lists what the business owns, what it owes, and what is left for the owner.
✓ Checking what you qualify for does not affect your credit score.
Every balance sheet follows assets = liabilities + equity. Assets are what the business owns. Liabilities are what it owes. Equity is the difference, the owner’s stake.
| Section | Typical items |
|---|---|
| Assets | Cash, accounts receivable, inventory, equipment, vehicles |
| Liabilities | Accounts payable, credit cards, loans, sales tax and payroll taxes owed |
| Equity | Owner contributions, owner draws, retained earnings |
| Line | Amount |
|---|---|
| Cash | $20,000 |
| Accounts receivable | $15,000 |
| Equipment | $25,000 |
| Total assets | $60,000 |
| Accounts payable | $10,000 |
| Loan balance | $20,000 |
| Total liabilities | $30,000 |
| Equity | $30,000 |
Assets of $60,000 equal liabilities of $30,000 plus equity of $30,000.
A balance sheet shows position, not performance. Pair it with a profit and loss. See how to create a profit and loss statement.
Clean books make a funding review faster, because the numbers a funder reads in your bank statements match what you can explain. We fund from $25,000 to $5,000,000, decisions move fast, and funding can arrive in as little as 24 hours for qualified businesses. We read about three months of business bank statements, consider owners with a FICO score of 500 or above, and sole proprietors can apply.
See bookkeeping habits that make funding easier and the financial statements funders want, then start your application. It takes about five minutes and begins with a soft credit pull.
Monthly is common. At minimum, prepare one at year end.
A balance sheet is a snapshot on one date. A profit and loss covers a period of time.
Profits kept in the business over time instead of being paid out to the owner.
A long-lasting purchase is usually recorded as an asset and written off over time. Ask your accountant how to treat specific purchases.
Funders mostly read business bank statements. A balance sheet helps if you want to explain your position.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
