DEBT SERVICE COVERAGE CALCULATION BY BANK
This query is : Resolved
23 January 2020
HI,
CAN ANYBODY LET ME KNOW HOW THE BANK CALCULATES DEBT SERVICE COVERAGE .IS IT BY NET INCOME(EBITDA) DIVIDED BY DEBTS SUCH AS LEASE FINANCE.PLEASE CONFIRM THE BUSINESS LOAN AND OTHER ADVANCES TAKEN FROM BANK ARE INCLUDED IN THE CALCULATION OR NOT
CAN ANYBODY LET ME KNOW HOW THE BANK CALCULATES DEBT SERVICE COVERAGE .IS IT BY NET INCOME(EBITDA) DIVIDED BY DEBTS SUCH AS LEASE FINANCE.PLEASE CONFIRM THE BUSINESS LOAN AND OTHER ADVANCES TAKEN FROM BANK ARE INCLUDED IN THE CALCULATION OR NOT
14 June 2020
All Forms of Debits taken will be taken into consideration including Principal and Interest Payment both short terms well as long term Loan and Advances.
The formula calculates much times the organisation is earning to fulfill its Debit Liability
The formula calculates much times the organisation is earning to fulfill its Debit Liability
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