Step-by-step calculations for payments, coverage ratios, leases and competing offers, plus the documents to prepare.
Lenders decide on numbers, so it pays to run those numbers yourself before you apply. This group shows the arithmetic a Canadian lender or credit union will use and how to read the result: the monthly payment on a blended or fixed-principal term loan, the debt service coverage ratio, the cost of leasing equipment against buying it with a loan, and how to compare two term sheets that differ on rate, fees and prepayment terms.
Begin with the business loan application checklist, which lists what to gather and the order lenders usually ask for it. Then work through the debt service coverage ratio example, the term loan payment example, refinancing an expensive loan, equipment lease versus loan, comparing two loan offers and financing a start-up.
The payment calculator, fixed-principal calculator, fee calculator, refinancing calculator and application checklist let you repeat each example with your own figures. All figures in the examples are illustrative.
Worked Examples and Checklists
The documents a Canadian bank, credit union or BDC will ask for, the numbers to work out before you apply, and what to check in the offer before you sign.
Worked Examples and Checklists
A worked comparison of two Canadian business loan offers with different rates, fees, prepayment terms and guarantees, showing total cost over the full term and if repaid early.
Worked Examples and Checklists
How Canadian lenders calculate the debt service coverage ratio, a full worked example, how much you can borrow at a 1.25 minimum, and how to stress-test the result.
Worked Examples and Checklists
How to compare leasing and borrowing to buy equipment in Canada, find the implied rate in a lease, and weigh down payment, GST/HST, capital cost allowance and end-of-lease terms.
Worked Examples and Checklists
When refinancing a high-rate Canadian business loan pays off, how to price the prepayment penalty and new fees, the break-even arithmetic, and the trap of stretching the term.
Worked Examples and Checklists
How new Canadian businesses get financing without a track record, from CSBFP and BDC to Futurpreneur and Community Futures, with a worked start-up funding plan and break-even test.
Worked Examples and Checklists
A worked example of a Canadian business term loan repaid by blended payments and by fixed principal plus interest, year by year, with prepayment and term-versus-amortization explained.
