It’s almost that time again… quarterly debt covenant reporting. Is your company going to have some explaining to do? If so, you’re not alone. Banks generally set 3-4 key covenants on their loans. These covenants serve as “tripwires” that alert the bank to potential trouble ahead. Most companies don’t bust all of them, but many find themselves
See also: Operating Income (EBIT) Financial Ratios EBITDA Definition Loan Agreement Time Interest Earned Ratio Analysis Net Income Benchmarking Fixed Charge Coverage Ratio Times Interest Earned Ratio Free Cash Flow Debt Service Coverage Ratio The debt service coverage ratio (DSCR) is a financial ratio that measures the company’s ability to pay their debts. In broad terms the
See Also: What are the 7 Cs of banking How to Manage Your Banking Relationship Line of Credit Trade Credit Collateralized Debt Obligations 5 Cs of Credit (5 Cs of Banking) The 5 Cs of credit or 5 Cs of banking are a common reference to the major elements of a banker’s analysis when considering
“The “5 C’s of credit” or “5 C’s of banking” are a common reference to the major elements of a banker’s analysis when considering a request for a loan. Namely, these are Cash Flow, Collateral, Capital, Character and Conditions. This article will provide an in-depth description of each of the 5 C’s of credit or
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