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Compute your self-financing capacity (CAF), your debt / CAF repayment ratio and the indicative room you have to take on a new loan.
Compute your self-financing capacity (CAF), your repayment ratio and the indicative room you have for a new loan.
Additions to depreciation and provisions (non-cash charges)
Outstanding bank loans and financial debt
Banks usually want debt / CAF under 3 to 4 years
Indicative computation. A bank also weighs guarantees, sector, track record and a forward plan, not only the debt / CAF ratio.
Your self-financing capacity (CAF) is the cash your activity generates on its own, before financing decisions: net income plus non-cash charges (depreciation and provisions), minus reversals. Banks divide your financial debt by your CAF to read your repayment capacity in years. Under 3 years is comfortable; over 4 years signals a stretched balance sheet.
A clear CAF lets you:
Hayot Expertise prepares the forward plan and the figures the bank expects, and defends your file. We turn your CAF into a financing strategy.