Meeting Loan Requirements

It isn't enough to be able to repay your loan, you also need to meet each of the conditions of your loan. The conditions are usually dependent upon meeting certain key measures used by the lender to assess your ability to pay back the loan and to secure the loan.

Without proper advice, a "cheap" rate could end up costing more than expected if you aren't able to meet these loan conditions and the lender enforces default provisions. Guild Commercial Finance liaises with your accountant and communicates with your lender to negotiate appropriate loan conditions and, where required, provide ongoing advocacy and support.

Key measures include:

• ICR (interest cover ratio) measures earnings before interest and taxes divided by your interest expenses.
• DSR (debt service ratio) provides a simple measure of the total debt of a business compared to its income.
• LVR (loan to value ratio) is the percentage of your loan against the valuation of your business and/or property assets.

As well as any other measures that the lender may feel important such as wage ratios, stock turnover, and occupancy ratios.

Are you concerned about meeting your loan conditions?

If you are, Guild Commercial Finance can audit your arrangements, help you communicate with your lender and even assist you in refinancing. Take our Finance Health Check.

Talk to a Guild Commercial Finance Consultant now