When you first had your idea for your business, you were probably not concerned with financial literacy. Maybe you’d never even heard of the phrase. But financial literacy, also known as understanding your business finances, is essential to making your business idea soar.
Business Impact NW has a library of resources, assembled below, to support your business at every stage. Read on to learn all about credit, borrowing money and loans, common financial statements, and even what to do when the economy does something unexpected.
Starting With the Basics 
Before you dive into the heavy topics, you need to lay a solid foundation of understanding the most essential parts of business finance. If you are a beginner with business financial statements or are considering working with a finance professional, start with the Five Tips for Understanding Financial Statements. There, you will learn how to decipher profit and loss statements and interpret long-term trends.
If you are not sure of the difference between business and personal credit, check out this post that explains both in detail, including the different scoring ranges, different reports, and reporting agencies. And remember, always keep your business and personal finances separate for the best credit reporting results.
If you have borrowed money or are thinking of getting a small business loan, check out this post on what to look for in business financing. It will encourage you to understand the terms of your repayment, missed payments, and how your loan will conclude once it is paid in full.
Build Financial Habits
Once you have conquered the basics, it’s time to move on to the essential habits for every business owner’s success. This post on financial readiness steps covers setting up a budget, accounting software, saving for the future, and advice if you are considering a business loan.
It’s always a good idea to give your business finances a checkup on a regular basis. Once a year, you can use this post as your guide to ensuring your accounting systems are solid. You should also consider conducting end of year financial reviews during slow seasons, and set goals for future years.
Borrowing and Capital
Many businesses, at some point in their lifespan, could benefit from a loan, whether to help them get started, expand, or tide them over in a rough patch. Business Impact NW is here to help you tackle small business financial literacy around borrowing money.
Smart Borrowing helps you discover what expenses you can use loans to cover. It also explains what revolving credit is and how a Revolving Line of Credit (R-LOC) can support your business goals.
When it comes time to borrow money, the lender (usually a bank or lending agency like Business Impact NW) will ask for a lot of documents. Honestly, it will seem like too many documents. Here is a post explaining why certain documents are essential for borrowing money, such as tax returns, debt schedules, and even paperwork from your personal finances.
If you do borrow money, there is also a guide to paying off loans early. The article discusses strategies for early repayment and reveals how to ensure you avoid any penalties for paying off the loan before the due date. It is also important to make sure that early repayment will positively affect your credit score.
Stay Resilient 
Resilience allows some companies to rise above others and thrive in the face of adversity. It is the key to longevity, adaptability, and financial wellbeing.
When the economy experiences unexpected events, business finances can become unpredictable, leading to uncertainty for your business. Business Impact NW recommends focusing on your profit centers to improve your balance sheet and help stay afloat during unprecedented times. The author suggests that,
“Business owners often forget to spend time thinking about which products, services, or lines of business bring in the most income for the least cost and effort.”
In addition, a special post about keeping your business nimble during uncertain times was developed in 2025 during a period of large market fluctuations. It covers how to resist the receding tides of the economy and maintain self-sufficiency and stability. It also advises on when to seek outside financing, diversifying income streams, reducing costs, and even seeking a business coach.
And lastly, as conditions change around the world, so will your credit. Learn all about changing conditions here and how your credit score is affected by outside forces beyond your control.
What’s Next
In pursuit of financial literacy for small businesses, you are bound to have questions. Business Impact NW helps business owners at all stages, from first-time dreamers to late-stage entrepreneurs to mom-and-pop shops celebrating forty years and counting. Business coaching helps clients find stability and sustainability. Loans support clients’ visions for the future. Explore what Business Impact NW can do for your business.
About the author
Kelsey Seymour
Since 2013 Kelsey has worked in the media and design industries, doing everything from managing photo and video shoots to organizing events for hundreds of people. Her expertise in writing and graphic design have led her to open up her own business full time. Kelsey takes a pedestrian-friendly approach to the topic of business finance, working with the professionals at Business Impact NW to create digestible, easy-to-read content for business owners like herself. She is based out of Redmond, Oregon with her husband, two children, and two cats.