Tag: loan covenants

Financial Analysis

Interest Cover and Gearing Ratios Explained: How Lenders Decide If Your Business Can Take On More Debt

When a lender asks about interest cover and gearing, do you know what they mean or how your numbers measure up? This guide breaks down both ratios with a worked example, shows how to calculate them yourself before applying for finance, and explains what to do if your figures are not strong enough yet.

Oct 14, 2026 6 min read

Accounting Standards

IFRS 16 and Leases Explained: Why Your Office Rental and Company Van Now Sit on the Balance Sheet

IFRS 16 now forces most leases—office space, vans, photocopiers—onto the balance sheet as a right-of-use asset and lease liability. This guide walks through why the change happened, a worked five-year office lease example with journal entries, and what it means for covenants, EBITDA and management reporting.

Sep 12, 2026 7 min read