The reason that Interest Coverage Ratio is used in commercial lending all has to do with tax.
All interest and most living expenses are tax deductible in commercial and business operations.
In essence, they’re not really expenses that need to be factored in for professional investors or business owners.
Of course, you still need to be in a strong financial position with good cash flow in order to qualify for a commercial loan.
Speak with one of our mortgage brokers about your commercial or business loan needs by calling 1300 889 743 or by filling in our free assessment form today.
We can let you know if you qualify!