Your profit against all your loan repayments, new and existing, as the cover ratio a lender works out.
It divides the yearly operating profit by the yearly repayments on existing loans plus the new one. A figure of 1 means profit exactly covers the repayments.
Lenders set their own minimum cover. The rate starts at 0% until you enter one.
The figure a particular lender requires, or how it adjusts your profit before testing it.
Finance is subject to status and to the lender’s terms. A personal guarantee makes you liable for the company’s debt if it does not repay, and it can be enforced against your own assets, including your home. Nothing here is a personal recommendation.
The monthly repayment on a business loan, the interest over the term and the total you repay with the arrangement fee.
Work it out →Two loan offers side by side: the monthly payment, the total repaid with fees, and the difference in pounds.
Work it out →The monthly payment on equipment or vehicle finance with a deposit and a balloon payment, and what the finance costs in total.
Work it out →Funding searches run on Swoop’s platform. Swoop Finance Limited is a credit broker and not a lender, and is authorised and regulated by the Financial Conduct Authority (FRN 936513). Buzz Accounting Ltd introduces businesses to Swoop and may receive a fee from Swoop when funding is arranged. Business funding is separate from the financial advice Equity & General Financial Services Limited gives through this website. Finance is subject to status, and a lender may ask a director for a personal guarantee.
If a lender asks you to guarantee the company’s borrowing, our advisers can advise on life cover for that debt.