Banks risk assessment of a Company’s ability to service bank debt

The core criteria that banks use nowadays is the concept of “free cash flow”. In the past there was great emphasis on “ebitda” (earnings before interest, tax, depreciation and amortisation). This older method did not capture all items that could be a drain on cash and the two commonly omitted by bankers was the increase Read more about Banks risk assessment of a Company’s ability to service bank debt[…]