How to Calculate EBITDA and Global Cash Flow for Your Business

When lenders evaluate a larger loan request (Usually over $250,000), two numbers often come up: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and Global Cash Flow. Understanding these calculations isn’t just helpful for loan approval — it’s essential for making informed business decisions.

Let’s break down what each metric means, how to calculate them, and why they matter.

What Is EBITDA?

EBITDA is a measure of your company’s operating performance. It strips away expenses like interest, taxes, and non-cash accounting items (such as depreciation) to give lenders a clearer picture of your ability to generate profit from core operations.

EBITDA Formula

Net Income + Interest + Taxes + Depreciation + Amortization = EBITDA

Example

• Net Income: $120,000

• Interest: $15,000

• Taxes: $25,000

• Depreciation: $20,000

• Amortization: $10,000
  

EBITDA = $190,000

This number shows your business’s “true” operating profit before external costs. All of these line items can typically be found right on the first page of your business tax return.

Why Lenders Care About EBITDA

Lenders like EBITDA because it measures cash flow from operations — in other words, your ability to make loan payments from actual business performance. A strong EBITDA demonstrates repayment capacity even if taxes or interest fluctuate.

What Is Global Cash Flow?

While EBITDA looks at your business alone, Global Cash Flow takes a wider view. Lenders consider both business and personal cash flows to ensure the borrower has enough overall liquidity to cover debts.

Global Cash Flow is especially important for small businesses where personal and business finances are often intertwined.

Business Net Cash Flow (EBITDA minus existing debt service) + Personal Net Cash Flow (income from salary, rental properties, investments, etc. minus personal debt obligations) = Global Cash Flow

Example

• EBITDA: $190,000

• Existing Business Debt Payments: $80,000= Business Net Cash Flow: $110,000

• Personal Income: $60,000

• Personal Debt Payments: $30,000= Personal Net Cash Flow: $30,000

  
  

Global Cash Flow = $140,000

Why Global Cash Flow Matters

Even if your business looks strong on paper, lenders want to know you won’t run into trouble if personal obligations drain too much cash. A positive global cash flow reassures lenders that you can manage both sides of your financial picture.

Takeaways for Business Owners

• EBITDA shows operational strength.

• Global Cash Flow shows overall repayment ability.

• Tracking both can help you anticipate how lenders view your financial health.

• Before applying for financing, calculate these numbers so you’re prepared for questions.

  
  

Next Steps

If you’re unsure how your EBITDA or global cash flow will look to a lender, that’s where we come in. At Brilliance Funding Partners, we help business owners run the numbers, evaluate loan options, and position their applications for approval.

About the Author

   Jared Holmes is the founder of Brilliance Funding Partners, where he helps business owners navigate the commercial lending landscape with confidence. With 9 years of hands-on experience in SBA lending, equipment financing, and working capital solutions, Jared focuses on asking the right questions and delivering financing strategies that make sense for each business. Connect with Jared for a personalized conversation about your options.