Who this is for: Businesses evaluating expansion loans, equipment finance or additional limits.
Borrowing capacity is often assessed by what a lender will sanction rather than what the business can comfortably repay. Those are different numbers.
We assess operating surplus, existing obligations, seasonality and margin sensitivity to arrive at an indicative comfortable service level, along with the point at which repayments begin to compete with working capital.
This gives you a negotiating position and a repayment structure preference before the loan is finalised.
Challenges this addresses
- EMIs sized to sanction limits, not to cash flow
- Multiple loans with overlapping repayment peaks
- Repayments competing with working capital needs
- No stress test on margin decline
What the engagement includes
- Operating surplus and obligation mapping
- Indicative service capacity range
- Stress testing on revenue and margin
- Repayment structure preferences
- Consolidation review where relevant