A Chinese proverb says the timely return of a loan makes it easier for you to borrow a second time, No one likes to be indebted, but sometimes we do not have a choice, If you prefer borrowing from financial lending institutions, you must have noticed that they ask for a business plan for a new business, or if you have been in operation, financial statements, Through these financial records, banks can tell whether you are a good candidate for a loan or not, Among the many things they check is your ability to repay a loan, and one criterion used is the cash-debt coverage ratio, So, what exactly is this ratio, and how does it determine your loan eligibility? Let’s tell you more.

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