Assessment Tool
Business Debt Assessment India
The right debt structure reduces your cost of capital and improves cash flow. The wrong structure — even on a viable business — creates NPA risk. This assessment diagnoses your debt profile.
What this assessment measures
Evaluates total debt quantum and structure (term vs working capital), DSCR and interest coverage ratio, banking relationship quality and number of banks, cost of debt by facility, potential for restructuring, and NPA risk indicators.
Why it matters
An Indian SME with the wrong debt structure — too much short-term debt, insufficient CC limit, or excessive term loan EMI — will face cash flow crises even with strong revenue and margins.
The 6 dimensions we assess
- 1.Debt quantum — total debt relative to EBITDA and net worth
- 2.Debt structure — term loan vs working capital vs unsecured mix
- 3.DSCR — debt service coverage ratio (EBITDA ÷ annual debt service)
- 4.Banking relationships — number of banks, relationship quality, collateral coverage
- 5.Cost of debt — blended interest rate vs market benchmarks
- 6.NPA risk indicators — any early warning signals of debt stress
What your score means
75–100
Healthy debt profile
Debt is well-structured and adequately covered. Review annually for refinancing opportunities as your credit profile strengthens.
50–74
Debt structure gaps
Specific structure or cost issues identified. A Virtual CFO renegotiates terms or restructures facilities.
0–49
Debt stress risk
DSCR or structure gaps create NPA risk. Immediate Virtual CFO engagement is recommended to restructure before the bank takes action.
What happens next
IBEAN's Virtual CFO manages your banking relationships, identifies refinancing opportunities, restructures facilities for better DSCR, and prevents early warning signals from escalating.
Frequently asked questions
Additional questions? Contact the advisory team
Ready to assess your Financial Health?
IBEAN's Business Debt Assessment India identifies your current position, gaps, and the highest-leverage actions to improve. Fixed-fee diagnostic. No commitment beyond that.