Commercial financing questions, answered plainly.

It depends on cash flow, existing debt, collateral, liquidity, ownership and the proposed use. A financing review starts with those facts.

Debt service coverage compares cash available for debt payments with required payments. Required coverage varies by lender, program and transaction.

Timing varies with the structure, lender review, appraisal, documentation and third parties. A complete package helps avoid preventable delays.

Expect business financial statements, tax returns, a debt schedule and details on the use of proceeds. Real estate or acquisition requests need transaction-specific documents.

Many lenders ask owners to guarantee a loan, but requirements depend on the lender, structure and borrower. Review the term sheet and legal documents carefully.

Equity depends on the financing source, transaction type, appraisal, leverage and program requirements.

Ask why. The issue may be cash flow, policy, collateral, timing or presentation. The answer informs whether to revise the request or consider another source.

A targeted approach based on fit usually creates a clearer comparison than sending the same package everywhere.

It looks across related businesses, owners and obligations to assess repayment capacity beyond one entity.

Repayment capacity, collateral, leverage, liquidity, management, industry and the transaction’s purpose.

They can differ in underwriting, timing, pricing, collateral, covenants and flexibility. Neither is the right answer for every borrower.

It is worth evaluating when the borrower and use qualify and a government guarantee helps a participating lender structure the request. Rules change.

A facility where availability is tied to eligible assets such as receivables or inventory, often with ongoing reporting.

Annual property net operating income divided by the loan amount, shown as a percentage. It is one lens on CRE leverage.

The proposed loan divided by the property or asset value, expressed as a percentage.