Optimum Capital Structure for a Business

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.

Optimum Capital Structure for a Business October 27th, 2016Team
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Convertible Note Calculator

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.

Convertible Note Calculator October 5th, 2016Team
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Convertible Loan Notes

Start-up businesses use convertible promissory notes to raise seed capital finance as they avoid the difficult process need to value the business valuation. The loans are repaid by the issue of new shares to the noteholders.

Convertible Loan Notes May 25th, 2017Team
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Crowdfunding and Financial Projections

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.

Crowdfunding and Financial Projections October 5th, 2016Team
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Monthly Lease Payment Calculator

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.

Monthly Lease Payment Calculator October 5th, 2016Team
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Loan Repayment Calculator

This loan repayment calculator works out the regular payment (Pmt) needed to repay a loan (PV) in n periods using a periodic interest rate i. The repayment is assumed to be made at the end of each period.

Loan Repayment Calculator October 5th, 2016Team
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Loan Amortization Schedule Calculator

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.

Loan Amortization Schedule Calculator March 13th, 2017Team
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Maximum Business Loan Calculator

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.

Maximum Business Loan Calculator October 5th, 2016Team
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Five C’s of Credit

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.

Five C’s of Credit October 5th, 2016Team
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Times Interest Earned

The times interest earned ratio is a measure of the ability of a business to make interest payments on its debt, as such it is a measure of the credit worthiness of the business. Providers of debt finance use the ratio to check financial projections.

Times Interest Earned October 5th, 2016Team
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Financial Leverage

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.

Financial Leverage October 5th, 2016Team
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