Blue Chip Wealth Strategies Inc.

Finance Health Check

Structuring Your Loan

Finance isn't just about finding the best rate. How you structure the loan and what are the conditions of your loan are important too.

Blue Chip has significant experience in commercial lending to help you avoid common pitfalls.

We can set up your finances:

To Protect Shareholders Interests and Assets
To Structure Your Loan More Effectively and Realize Savings

To Allow for Changing Requirements in Your Business Cycle

Meeting Loan Requirements

It is not enough to be able to repay your loan, you also need to meet each of the conditions of your loan. The conditions are usually dependent upon meeting certain key measures used by the lender to assess your ability to pay back the loan and to secure the loan.

Without proper advice, a "cheap" rate could end up costing more than expected if you are not able to meet these loan conditions and the lender enforces default provisions. Blue Chip liaises with your accountant and communicates with your lender to negotiate appropriate loan conditions and, where required, provide on-going advocacy and support.

Key measures include:

Debt to Tangible Net Worth Measures Owners Tangible Net Worth to Debt
DSC (Debt Service Coverage Ratio) Provides a Simple Measure of the Total Debt of a Business Compared to its' Income
Current Ratio is the Percentage of Your Current Assets to Current Liabilities

As well as any other measures that the lender may feel important that are specific to your industry.

Finance Health Check

Do you understand your existing loan covenants?

Are you aware of your potential risks and would you know what to do in the event of a covenant breach?

With lender scepticism high and flexibility low, it makes sense to review your finance arrangements – before the bank does.