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Debt service cover ratio = cash available for debt ÷ annual repayments — a core lender affordability test.
Step 1: lift your affordability
Collect overdue invoices and trim discretionary spend to raise the free cash a lender sees, improving your cover ratio. A stronger ratio is the single biggest improvement you can make. See improving cash flow.
Step 2: clean your credit file
Pull your credit report, dispute errors, and ensure any satisfied CCJ reads as satisfied. A clean file removes obstacles and improves pricing. See improving your score.
Step 3: sharpen the purpose
Be able to state clearly what the money funds, the return it produces, and how it will be repaid. A specific, evidenced purpose reassures an underwriter. See loan purpose and approval.
Step 4: organise your records
Have filed accounts, recent statements and management figures ready and consistent. Tidy records read as a well-run business and speed the decision. See preparing to apply.
Confirm before you submit
Use the calculator to check your affordability case is solid before applying.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
How do I strengthen a business loan application?
Lift affordability by collecting invoices and trimming spend, clean your credit file of errors, sharpen the purpose of the loan with a clear repayment source, and organise your accounts and statements.
What single change helps a loan application most?
Improving affordability — the free cash a lender sees against the repayment. A stronger cover ratio, achieved by collecting what you are owed and cutting avoidable spend, is the biggest single improvement.
When should I make these improvements?
In the weeks before you apply, since lenders review your recent bank data and current credit file. Genuine improvements to cash flow and records over that window show through in the decision.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.