Latest posts
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Understanding the Risks of Overtrading in Business
Overtrading is a silent threat to many growing businesses. While it might initially seem like a positive sign—orders coming in, demand surging—the truth is more complicated. When a company stretches its financial and operational capacity too thin, it risks running into serious difficulties that can spiral out of control. Let’s explore what overtrading really means,…
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CFADS Explained: The Key Metric to Assess Your Business’s True Debt Repayment Capacity
When businesses take on debt to fund expansion or maintain operations, their ability to repay those obligations becomes a primary concern for lenders. A widely adopted tool to evaluate this capability is Cash Flow Available for Debt Servicing (CFADS). This financial metric offers a detailed snapshot of the cash that remains after all essential business…