The total amount of debt your business is carrying is important, but it is also important to know what type of debt you are carrying. In this regard, it can be useful to prepare an analysis, or table of debt characteristics.
Some of the data you may want to include in this type of analysis include:
Type of debt (secured and unsecured bank loans, revolving lines of credit, bonds)
Amount of each type of debt
Interest rate (fixed, variable, and percentages)
Due dates
Annual debt servicing cost
Annual installments
Collateral provided
Having a clear picture of the structure of your debt will allow you to make decisions regarding potential alternative sources of financing, if necessary.
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