The capital structure of a business is the mixture of equity and debt it uses to finance its operations. The optimum capital structure is one which minimizes the weighted average cost of capital and thereby maximizes the valuation of the business.
The convertible loan note calculator shows the effect on the capitalization table of new equity investment when this triggers the conversion of a loan note. The calculator takes into account the impact of any discount or cap contained within the convertible loan note agreement.
Crowdfunding is a technique for a business to obtain finance in which small amounts of funding are raised from a large number of people (the crowd). Crowdfunding can be either rewards, debt or equity based depending on the requirements of the business.
This monthly lease payment calculator works out the monthly payment (Pmt) needed at the end of each month taking into account the cost of the asset (C), its residual value (R), the lease interest rate (i), the number of payments (n), and the number of advance payments (a) required by the lease agreement.
This free loan calculator with amortization schedule can be used for any loan up to a maximum term of 3,650 payment periods.
The calculator will produce a loan amortization schedule and calculate the periodic repayments due on the loan together with the total amount repayable and total interest payable over the term.
This maximum business loan calculator can be used when preparing financial projections for a business plan to estimate the maximum amount a lender is willing to lend based on three lending criteria, collateral available, the capacity of the business to make repayments, and the net worth of the business.
The 5 C’s of credit is one technique used by financial institutions to assess the credit worthiness and risks associated with lending to a business seeking debt finance. An understanding of the five C’s of credit combined with financial projections, will allow a business to be better prepared when approaching lenders for debt funding.
A business with a high level of financial leverage (sometimes referred to as being highly geared) is considered to be more risky as finance costs need to be paid before equity owners get their return. However, in return for this higher risk a high level of financial leverage will give greater returns to the owners provided cash and profit are managed correctly.