Challenges Small Businesses Face Getting Bank Loans
10/05/2022 Computer - IT - Webs
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Description
Lenders often consider the debt-to-equity ratio to assess the amount an entrepreneur is seeking and how much he/she has already invested in the business.
A ratio of 1-1.5 is ideal to prove to the lenders that a reasonable amount is already invested in the business and the entrepreneur is also capable of repaying a debt. Once the business grows and sales increase,
one should add assets to reinvest a portion of the income and repay debts to enhance the equity and maintain a considerable debt-to-income ratio.
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zeropointfinance
Individual
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