Could your next business loan get “ratio’d”?

Looking for a business loan? If so, try to find out how each bank will evaluate your default probability. Many check multiple financial ratios and, if one looks askew, they may deny the loan. Examples include current ratio (current assets / current liabilities) and total asset turnover ratio (annual revenue / total assets). Banks may also apply industry-specific ratios and other benchmarking tools such as community-based scoring. We can help evaluate your financials and determine where improvement may be needed to attract financing.