Explanation
The balance sheet follows the basic formula:
Assets = Liabilities + Equity
It provides insights into:
- What the business owns (assets)
- What it owes (liabilities)
- Net worth (equity)
A strong balance sheet suggests financial health and operational stability.
Practical Example of a Balance Sheet
A tech firm with £500,000 in assets and £300,000 in liabilities shows £200,000 in owner’s equity.
How Bizcap Can Help:
If you need to strengthen your asset base or refinance liabilities, Bizcap can support you with accessible funding options.