Equity is the difference between your business assets and business debts. If you have nothing left over after paying all of your debts of the business, then you have no equity. Generally, lending institutions want to see that the applicant has equity (assets minus debt) of least one half of the organization's total debt, including the loan amount.
List all assets. Please enter numerical numbers rounded to nearest dollar and omit punctuation, for example: for $100,000.00, please enter 100000. Make sure you list the assets the loan will provide. For example, if you plan on purchasing a parcel of land with the loan - list it as real estate.
List all business debts.
Press "Calculate Equity" to tabulate your equity total. This
is a percentage based on the number that you provided. Then Press
"Calculate Equity Ratio" to tabulate your Debt to Equity Ratio.
Press "Send Score" and your Equity score will be placed in the left-hand
Print this page for your records
After you have printed your equity information, please proceed to the next
section by clicking on "Collateral" in the left-hand column or the
arrow to the right.