Tag Archives: Council of Economic Advisers

Strong historical cash flows.

A banker will first look at your income statement and bottom line, add back a few things that are fairly essential to the cash flow analysis, such as depreciation, which is a non-cash expense.  They’ll use the business’ interest expense to come up with just a rudimentary cash flow number. “That’s important because bankers just want to have an idea of your capacity to repay their loan,” says Dillon. “So, the basic equation in a bankers mind is, ‘this is how much it’s going to cost for them to repay my loan.’”

In the News: BofA Settles Claims for $335 Million; Actor Graham Brown Dies and More

A few noteworthy headlines around the Web

See what’s going on in the world with today’s compilation of news around the Web

By Sade K. Muhammad

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