top of page
Anchor 2

Basic Financial Feasibility Tool

Seeking help with your start-up or expansion? Talk to us!

The Basic Loan Feasibility Tool is designed to help borrowers evaluate their readiness for a business loan and assess the feasibility of obtaining one. By inputting key loan details, personal financial data, and business financial metrics, users can quickly determine their likelihood of qualifying for a loan. The tool also highlights critical metrics like Debt-to-Income Ratio (DTI), Debt Service Coverage Ratio (DSCR), and Collateral Coverage, which are essential for both lenders and borrowers to understand.

​

Instructions:

​

  1. Loan Details:

    • Select the loan purpose (Startup, Expansion, or Acquisition).

    • Enter the desired loan amount in dollars.

    • Specify the loan term in years and the expected interest rate.

  2. Personal Financial Information:

    • Enter your personal credit score.

    • Input your current net worth, monthly income, and monthly expenses.

  3. Business Financial Information:

    • Provide the total revenue for the past year.

    • Enter your current monthly business expenses.

    • Specify the current market value of your business collateral.

  4. Evaluate Feasibility:

    • Click the "Evaluate Loan Feasibility" button to calculate results.

    • Review the results section for key insights, including loan metrics and feasibility indicators.

  5. Export Results:

    • Use the "Export to PDF" button to save a detailed report of your inputs and results.

Explanation of Results

​

  1. Loan Purpose and Key Metrics:

    • Displays your chosen loan purpose and basic details like loan amount, term, and interest rate.

  2. Personal Financial Summary:

    • Highlights your credit score, net worth, and monthly financial situation.

  3. Business Financial Summary:

    • Details your annual revenue, business expenses, and collateral value.

  4. Critical Metrics:

    • Debt-to-Income Ratio (DTI): Indicates the percentage of your monthly income allocated to debt payments. A ratio under 40% is ideal.

    • Debt Service Coverage Ratio (DSCR): Measures the ability of your business to cover debt payments with its net income. A DSCR above 1.25 is considered strong.

    • Collateral Coverage: Shows the percentage of the loan amount covered by collateral. A value above 100% is typically required.

  5. Feasibility Insights:

    • Provides a holistic view of your financial readiness and highlights areas where improvement may be needed.

 

Disclaimer

​

This tool is designed for informational purposes only and should not be considered financial advice. Results are estimates based on user-provided inputs and are not guarantees of loan approval or terms. For personalized advice tailored to your specific situation, we recommend consulting with a financial advisor or lender.

bottom of page