Capacity, the Definition of Capacity, and What is Capacity is explored in this segment. Capacity differs
from cash flow in that it refers to the owner’s ability to live a reasonable life style after the usual bills
of the business are paid along with the proposed repayment of loan. Lenders understand that if you
need to make a choice between putting groceries on the table and repaying the loan, the groceries are
probably going to win. Without the proper Capacity, loans generally don’t get done.
Definition of Capacity
What is Capacity