This content was created by Chris Larsen. This content was uploaded by Chris Larsen. This is a YouTube video titled "💡 Ever wonder why banks aren’t lending like they used to?" containing a discussion between two speakers about the reasons behind banks' reduced lending activity, focusing on cash flow covenants and lending criteria. The content is from June 26, 2025.
But why are banks not lending as much today as they.
Were before from a bank? What does that like? Naturally, they just credit tightens. Right. So because a lot of these large maturing loans are hitting cash flow covenants, this is going to, this reduces banks appetite to go, you know, to, to extend more.
Because banks want to see a percentage of cash flow that can cover their loan. So, for instance, if, if you need a million dollars to cover a loan payment, banks are going to want to see typically 1.25 million or higher in terms of, of cash flow to do that. So they won't they're not necessarily looking to lend on the amount of the property, they're looking to lend on the amount of the cash flow versus the debt service. Is that accurate?
Yeah.
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