PLAIN-LANGUAGE DEFINITION
The process lenders use to evaluate whether a borrower qualifies for a loan. Key factors include DSCR, debt-to-equity ratio, credit history, and cash flow stability.
What to check
Test the assumptions and consider what happens if revenue or costs differ from your plan.
Where this connects to Impresa
You may encounter this concept when reviewing Capital Planning. Start with the underlying inputs and check the applicable reporting period before interpreting the result.
Read the Capital Planning guideA NOTE ON INTERPRETATION
NEXT DEFINITIONBase Scenario ↗Definitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.