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After-Tax Cost of Debt – How to Calculate it For Your Business

Debt RR

It’s important to understand how debt impacts a company’s bottom line so businesses can optimize their financial strategy. Calculating the after-tax cost of debt is one way business owners can determine how much value their debt provides. Debt Financing. It’s the most conservative debt option for both parties.

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What is a Debt Ratio and why it’s a Key Financial Metric

Debt RR

Obligations that are often included in the debt ratio are : Equipment financing, including office equipment and heavy machinery. Unsecured business loans, like SBA loans and lines of credit. Alternative financing, including merchant cash advances and invoice financing.