HOW TO DETERMINE DEBT CAPACITY FOR A COMPANY
DECEMBER 1, 2022
Most businesses will eventually need to borrow money or enter into a lease agreement. Whether it’s venture capital to get new technology off the ground or a lease for office equipment, financial transactions like these happen. There’s nothing wrong with this – it’s a standard course of business in many industries. In fact, some industries thrive on utilizing their debt efficiently to make the most of their cash flow. But how does a company determine its own debt capacity?