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Exit Planning Tools
- Day Zero Guide
- Aha Planner
Community
- The Grid

A California based company on a mission to grow the wealth of everyday Americans. Zolidar is the easy button for employee ownership.

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👋 Meet Zolid AI

Here to support your company's exit journey — Zolid AI can answer questions and provide insights. Free for now, with fair usage limits.

Your conversations are not shared with others. We may review them to improve Zolid AI.

Ask me anything

Zolid AI may provide inaccurate info, so verify responses.

Definition of Debt Capacity on The Grid Glossary

Debt Capacity

Published on 2024-07-22 | Last edited on 2024-09-09

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Definition

Debt capacity is a measure of a company's ability to borrow and repay debt under agreed terms. Companies use debt for growth and asset acquisition, as high debt causes financial strain. Lenders evaluate debt capacity through financial metrics like balance sheet strength

#Balance Sheet

#Commercial Term Loan

#Asset-based Lending

#EBITDA

#DSCR