​​​Business Financing

From analyzing your family’s business financial benchmarks to applying for outside funding, this page has guides for financial analysis, breakeven sales, project assessments and more!

PDFHow Should Business Income be Divided?

Michael Langemeier

Keywords: business income, assets, division of income

If everyone in the farm business owned a similar amount of business assets, worked the same number of hours, and provided management expertise, the answer to the question in the title would be very straightforward. In this unlikely scenario, business income could be split equally. Unfortunately, asset ownership, hours worked, and management responsibilities vary across managers, operators, and owners of the business. This increases the importance of coming up with a conceptual framework to divide farm business income. This article describes a model that can be used to divide farm business income, and provides an illustration of how this model can be used in practice.

PDFEstimating Breakeven Sales for Your Small Business

Cole Ehmke and Alan Miller

Keywords: business financing, breakeven sales

This article targets owners and managers of a family business or other small business, and presents a simple calculation for assessing the cost and revenue relationships in a venture. Readers are expected to be able to conduct a breakeven analysis of their venture.

PDFMeasuring and Analyzing Farm Financial Performance

Alan Miller, Craig Dobbins, Michael Boehlje, Freddie Barnard, and Nicole Olynk

Keywords: business financing, financial position, financial performance

This publication helps you measure the financial position of your farm business and analyze how changes may improve performance. The article includes topics such as financial performance and responding to financial stress.

PDFTransferring Farm Machinery through a Lease Agreement

Michael Langemeier

Keywords: business income, assets, division of income

This article describes a conceptual approach that can be used to transfer farm machinery through a lease agreement, and provides an illustration of how this approach can be used in practice. The illustration also depicts how the lease payments may evolve over time.

PDFWhat is Credit?

David Evans, Schane Coker, and Andi Long

Keywords: credit, family finances, loans, personal finance

What is credit? Your financial credit (i.e., financial reputation) is a tool used by lenders, insurers, landlords, and even employers to quickly assess whether trusting you is going to be worth the risk. If your credit is good, you potentially pose less of a threat.

PDFThe Credit Report

David Evans and Andi Long

Keywords: credit score, family finances, loans, personal finance

The information on your credit report is used to generate a credit score in your name. A healthy credit score can save you thousands of dollars over the life a loan.

PDFLife, Love and Loans

Andi Long, Schane Coker and David Evans

Keywords: family finances, loans, personal finance

This article explores three things to consider as you head toward financial security by managing your credit wisely.

PDFCapital Investment Analysis and Project Assessment

Michael Boehlje and Cole Ehmke

Keywords: capital investment, project assessment, economic profitability, financial feasibility

This article targets business managers facing a capital investment decision. The article presents two phases of project assessment: economic profitability and financial feasibility. Readers are expected to be familiar with the time value of money and be able to calculate the net present value of a project and determine if the investment will generate enough cash to make debt payments.

PDFWriting a Successful Grant Proposal

Maria I. Marshall, Aaron Johnson, Joan Fulton

Keywords: business financing, grant proposal

This article targets business managers seeking grant funding to support their business activities, and explains the steps involved in completing a successful grant proposal with specific examples for new business ventures.

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