What is Loan-to-Value (LTV)?
Loan-to-value is the ratio of a loan amount to the appraised value of the asset securing it, a primary measure lenders use […]
What is the Interest Coverage Ratio?
The interest coverage ratio measures how many times operating earnings cover interest expense, a key indicator of whether the business can comfortably […]
What is Equipment Financing?
Equipment financing is a loan or lease structure specifically designed to fund the acquisition of business equipment, with the equipment itself serving […]
What is EDC (Export Development Canada)?
EDC is a federal Crown corporation that helps Canadian businesses manage the risks of international trade and access financing for export-related activities, […]
What is a Demand Loan?
A demand loan is a loan that the lender can require to be repaid in full at any time, with little or […]
What is the Debt-to-Equity Ratio?
The debt-to-equity ratio compares what a business owes to what it owns net of liabilities, measuring how much of the business is […]
What is the Debt Service Coverage Ratio (DSCR)?
The debt service coverage ratio measures whether a business generates enough operating income to cover its debt payments, and it is the […]
What are Debt Covenants?
Debt covenants are the contractual conditions attached to a loan that the borrower must maintain throughout the lending relationship, and breaching them […]
What is a Business Credit Score?
A business credit score is a numerical rating of a company’s creditworthiness based on its payment history, debt levels, and financial behavior, […]
What is a Credit Facility?
A credit facility is a formal borrowing arrangement between a business and a lender that sets the maximum amount available, how funds […]
What is a Covenant Breach?
A covenant breach occurs when a borrower fails to meet a condition in a loan agreement, giving the lender the right to […]
What is a Commercial Mortgage?
A commercial mortgage is a loan secured against commercial real estate, such as an office, warehouse, retail, or industrial property, used to […]