Overview
Understand debt-service coverage ratio and why lenders consider repayment capacity.
What to consider
The right approach depends on the business, transaction, financial profile, collateral and timing. Compare structures based on total cost, repayment requirements, flexibility and purpose.
Questions to ask
Ask what the financing is intended to accomplish, how repayment will work, what documents are required, what fees may apply and what conditions can affect approval.
CMCC perspective
A well-prepared financing request starts with a clear objective and a realistic understanding of the business or transaction.