EQUITY - First Step Series

EQUITY
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.

Step One: 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.

Cash	$
Cash Value Life Insurance	$
Accounts/Notes Receivable	$
Real Estate	$
Equipment	$
Personal Property	$
Inventory	$
Listed Securities	$
Unlisted Securities	$
Other	$
	$

Step Two: List all business debts.

Account and Bills Due	$
Cash Value Life Insurance Loans	$
Secured Debt Due Banks	$
Unsecured Debt Due Banks	$
Accrued Taxes	$
Real Estate Mortgages	$
Real Estate - Partial Interest	$
Secured Debt Due Others	$
Unsecured Debt Due Others	$
Other	$
Loan Amount	$
	$

Step Three: 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.

Assets Needed to Score 5 with Your Total Business Debts
Assets Needed to Score 12 with Your Total Business Debts
Assets Needed to Score 20 with Your Total Business Debts

Step Four: Press "Send Score" and your Equity score will be placed in the left-hand frame.

Step Five: Print this page for your records

Step Six: 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.

Loan Amount
Management
Credit
Repayment
Equity
Collateral