You sometimes read that Bill Gates is worth $ 85 billion or that Snapchat CEO Evan Spiegel has become worth $ 1 billion less. Maybe you wonder how rich (or poor) you are? Fortunately, you don’t have to be a millionaire to find out. Everyone can find out how much she is worth thanks to your net worth. Calculating net assets is not that difficult: you add up what you own and subtract your debts there. When you regularly calculate your net worth, you also know whether you are getting richer or poorer.
If you want to get rich, you must know your net worth and try to increase his net worth
Calculating your net worth is an important part of your financial planning. It gives you a good idea of how much you are worth and in which direction your prosperity is evolving. If your net worth falls, it is time to review and adjust your finances. When your net assets increase, you can see how you can increase it faster. You can Check it out here and have the best deal now.
Smaller business credit applications are automatically assessed on the basis of indicators. Insight helps to increase your chances.
Therefore, first do a financing check. Is it normative? What do you need to know?
What is borrowing capacity? Apart from the amount you want to borrow, your bank determines whether you can borrow: your borrowing capacity. If your borrowing capacity is sufficient, your credit application has a chance.
How is your borrowing capacity determined?
Any calculation of borrowing capacity is based on your debt in relation to your ability to make money. Which debts are included and which profit is calculated can differ from bank to bank. A safe measure is your operating profit (profit before interest, tax, depreciation). The lower the debt is to operating income ratio, the better is your borrowing capacity.
If your borrowing capacity is less than two, your application has a chance. The lower your debts are and the higher your profit is, the better your score.
If your (bank) debts are no more than one and a half times your equity, then you also have a favorable debt position.
The most important
Can you pay the financing costs (interest plus repayment) for a long time? This is also called payment capacity. You calculate it by dividing your operating profit by your interest and principal payments. If the outcome is higher than two, you score fine.
Tip: Check whether you meet these three points before going to your bank or other financier.
Has your application been approved?
All major banks do offer online insight into your options. You fill in a number of details and the calculation model of your bank assesses your chance of a successful application: a financial check in advance. Pay attention! You cannot derive any rights from this, the model only gives you a first indication of the feasibility of your application. Tip. Have the financial statements for the past two years to hand and understand them so that you can enter the correct amounts. Take the time to fill in the form, you can often no longer adjust the amounts later. Otherwise, leave it to a financial advisor or do it together with him.