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 […]
What is Cash Flow Lending?
Cash flow lending is financing based on your business’s ability to generate enough cash flow to service debt, rather than the value […]
What is the Canada Small Business Financing Program (CSBFP)?
The CSBFP is a federal government-backed loan program that helps small businesses access financing for equipment, leasehold improvements, and commercial real estate […]
What is Bridge Financing?
Bridge financing is short-term funding used to cover a defined gap between now and a known future event, such as an asset […]
What is the Business Development Bank of Canada (BDC)?
The BDC is a federal Crown corporation that provides financing, advisory services, and venture capital to Canadian businesses, with a focus on […]
What is Asset-Based Lending?
Asset-based lending is a form of business financing where the loan is structured around the value of specific assets, receivables, inventory, equipment, […]