Lesson 7 of 7

From the loan to the business: scale, capital and the ratios to watch

The earlier lessons measured one loan. This lesson adds the loans up to the business: how the parts become a return on the loan book, why fixed costs make scale matter, why a lender holds capital and what the minimum is for banks, how the return on equity depends on leverage, how self-sufficiency is measured, and the short list of ratios to watch.

Published 16 October 2026