Borrowing requirements

Borrowing requirements are the requirements required by loan issuing entities, for example, the age of the company is not less than two years, the company’s latest approved financial statements, and a 12-month bank statement.

Borrowing capacity reflects the ability of an individual or business to obtain loans based on income, assets, credit history, and repayment capability.

- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.

- Example: Finance teams use **Borrowing requirements** when planning funding needs and managing cash and risk.

- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.