{"id":19352,"date":"2024-08-20T14:00:05","date_gmt":"2024-08-20T13:00:05","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=19352"},"modified":"2026-07-09T15:33:08","modified_gmt":"2026-07-09T14:33:08","slug":"what-is-the-gearing-ratio","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/what-is-the-gearing-ratio\/","title":{"rendered":"What is the gearing ratio?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is the gearing ratio?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2024-08-20T14:00:05+01:00\">20 August, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is the gearing ratio?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-the-gearing-ratio\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/kieronjohnson\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/01\/Kieron-Johnson-350x350.jpg\" class=\"entry-author__image\" alt=\"kieron-johnson-profile-picture\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/01\/Kieron-Johnson-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/01\/Kieron-Johnson.jpg 600w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Kieron Johnson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Financing your business can feel a little like balancing spinning plates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Picture a circus performer operating at the peak of their powers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whenever they&#8217;re intently focused on balancing 1 spinning plate, even for a split second too long, they run the risk of another plate crashing unceremoniously to the ground.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But when they dedicate equal time to balancing each spinning plate, they&#8217;re home and dry (and their trusty plates thank them for it).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Likewise, when you keep close tabs on your company&#8217;s debt and equity levels, you&#8217;re committed to keeping something called the gearing ratio intact, whether you realise it or not.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, we walk you through what gearing is and what it&#8217;s used for, how gearing is calculated and interpreted and how your business can reduce it\u2014increasing your company&#8217;s stability, flexibility, and <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/small-business-financially-fit\/\" target=\"_blank\" rel=\"noopener noreferrer\">financial health<\/a>.<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-gearing-and-what-is-it-used-for\" data-level=\"2\">What is gearing and what is it used for?<\/a><\/li><li><a href=\"#h-how-to-calculate-the-gearing-ratio\" data-level=\"2\">How to calculate the gearing ratio<\/a><\/li><li><a href=\"#h-how-to-interpret-the-gearing-ratio\" data-level=\"2\">How to interpret the gearing ratio<\/a><\/li><li><a href=\"#h-how-to-use-the-gearing-ratio-an-example\" data-level=\"2\">How to use the gearing ratio: An example<\/a><\/li><li><a href=\"#h-how-to-reduce-the-gearing-ratio\" data-level=\"2\">How to reduce the gearing ratio<\/a><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final thoughts<\/a><\/li><\/ul><\/div>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-46d869e5-f36b-4b06-8a2c-0ee65a10435b\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-46d869e5-f36b-4b06-8a2c-0ee65a10435b\"\n\t>Download your free small business toolkit and use the checklists and templates to manage your accounting, payroll and HR business admin with ease<\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-gearing-and-what-is-it-used-for\">What is gearing and what is it used for?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Gearing measures a company&#8217;s financial leverage\u2014that is, the proportion of its business funded by borrowed money (debt financing) versus the owner(s) investment or retained earnings (<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/funding-options-grow-your-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">equity financing<\/a>).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gearing is a useful metric for lenders, investors, and small business owners alike.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It provides insights into a company&#8217;s risk level, which help lenders assess a borrower&#8217;s ability to repay debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gearing also helps investors determine whether to invest in a particular company (or not touch it with a 10-foot pole).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And small business owners can use it to analyse their <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/cash-flow-emergency-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">cash flow<\/a> and decide if they need to reduce their borrowing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-calculate-the-gearing-ratio\">How to calculate the gearing ratio<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are a number of ways to work out your gearing, but here are the 3 most commonly used methods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1. Debt-to-equity ratio <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The most popular formula is the debt-to-equity ratio, which shows how much debt your company uses to finance the business rather than using its own money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Take your company&#8217;s total debt\u2014short-term debt plus long-term debt\u2014then divide it by its shareholder equity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you prefer the debt-to-equity ratio as a percentage, multiply it by 100.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The formula looks like this:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>(Short-term debt + long-term debt) \/ shareholder equity<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2. Debt ratio <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another popular formula is the debt ratio, which measures the proportion of your company&#8217;s assets financed by debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Divide your company&#8217;s total debt by its total assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Again, if you would like the debt ratio as a percentage, multiply it by 100.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s the equation:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Total debt \/ total assets<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>3. Equity ratio <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A third formula is the equity ratio, which is the proportion of your company&#8217;s assets funded by equity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Divide your company&#8217;s total equity by its total assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For an equity ratio expressed as a percentage, multiply it by 100.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the calculation:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Total equity \/ total assets<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Regardless of the gearing formula you use, you&#8217;ll get a good idea of how well your company will be able to satisfy its financial obligations during economic fluctuations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-interpret-the-gearing-ratio\">How to interpret the gearing ratio<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">High gearing (above 0.5 or 50%) means your company has a lot of financial leverage, so it heavily relies on debt to pay for day-to-day operations, which is, quite literally, risky business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During an economic downturn, your company may have difficulty maintaining its debt repayment schedule, which could, in turn, put it at risk of default and even insolvency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But not all companies with high gearing are created equal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, a company with high gearing operating in a capital-intensive sector, such as the car industry, or a regulated sector, such as utilities, isn&#8217;t necessarily in poor financial shape because high gearing is typical in these industries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Equally, companies with low gearing aren&#8217;t created equal either.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although low gearing (below 0.25 or 25%) suggests a company is using more equity than debt to finance the business, it can also mean the company can&#8217;t capitalise on debt financing to expand it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ideal gearing is between 0.25 (25%) and 0.50 (50%), which indicates a healthy balance between equity and debt financing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a more complete picture of your company&#8217;s financial condition, it&#8217;s important to contextualise gearing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other words, your company&#8217;s ratio should be benchmarked against the ratios of other companies in the same industry.<\/p>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-46d869e5-f36b-4b06-8a2c-0ee65a10435b\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-46d869e5-f36b-4b06-8a2c-0ee65a10435b\"\n\t>Download your free small business toolkit and use the checklists and templates to manage your accounting, payroll and HR business admin with ease<\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-use-the-gearing-ratio-an-example\">How to use the gearing ratio: An example<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Let&#8217;s look at how your small business can benefit from calculating its gearing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the purposes of this illustration, we&#8217;ll call your fledgling accountancy practice, A-Star Accounting (ASA).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rumour has it that accountants are flocking in their droves to join ASA, so you&#8217;re hellbent on opening a second location.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But you need more funds to hire staff, buy equipment and lease extra office space.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can either apply for debt financing, such as a bank loan, equity financing (investment), or both.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By calculating ASA&#8217;s gearing, you evaluate the financial risk attached to securing more debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If it&#8217;s high (above 0.5), which indicates heavy debt reliance, you might want to reconsider applying for a bank loan and consider the equity route instead.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But if gearing is less than 0.25, for example, this suggests ASA is less dependent on borrowing to finance the business, which makes taking on additional debt far less risky.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-reduce-the-gearing-ratio\">How to reduce the gearing ratio<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Larry Hartman, Chief Strategic Officer at <a href=\"https:\/\/www.pixelfreestudio.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">PixelFree Studio<\/a>, a software solution company, shares some first-hand experience of reducing his company&#8217;s gearing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;In PixelFree&#8217;s growth phase, we focused on equity financing to keep our gearing in a safe range,&#8221; he says.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Exploring equity financing options, like getting investors onboard, can help your <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/balance-sheet-use-financial-statement\/\" target=\"_blank\" rel=\"noopener noreferrer\">balance sheet<\/a> without adding to your debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;It certainly helped us grow without taking on too much debt, which is important for long-term success, because it kept our finances stable.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Larry recommends companies reinvest profits in the business rather than take out more loans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;To do this, cut unnecessary costs and, to make more money, focus on providing goods or services with high margins,&#8221; he says.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other ways to reduce your gearing include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Paying off long-term debt to reduce interest payments.<br><\/li>\n\n\n\n<li>Refinancing debt to take advantage of lower interest rates or longer repayment terms.<br><\/li>\n\n\n\n<li>Selling non-essential assets to increase cash reserves and pay down more debt.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Gearing is a little metric that goes a long way towards letting lenders and investors know the financial health of your company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s also a big boon for your business analysis.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By keeping a close eye on your gearing, you&#8217;ll not only be better positioned to weather any financial storms that come your way, but you&#8217;ll also be better informed if or when your business sparks any investor interest.<\/p>\n\n\n \n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Small business toolkit<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get your free guide, business plan template and cash flow forecast template to help you manage your business and achieve your goals.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-adbf67e7-f26f-4f58-a954-9e67147b2f85\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free toolkit<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t<div class=\"single-cta__downloads\">\n\t\t\t\t\t\n\t\t\t\t\t4,088 readers have downloaded this guide\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" 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type-post status-publish format-audio has-post-thumbnail hentry category-growth-customers tag-ai tag-grow-business tag-start-business tag-sound-advice-podcast tag-startup-stories post_format-post-format-audio business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/12\/Sound-Advice_Blog_S3_Ep22-1440x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/12\/Sound-Advice_Blog_S3_Ep22-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/12\/Sound-Advice_Blog_S3_Ep22-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/12\/Sound-Advice_Blog_S3_Ep22-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 24 24\"><path d=\"M9.75 1.5C8.793 1.5 8 2.293 8 3.25v8.377a.8.8 0 0 0 0 .243v4.38c0 .957.793 1.75 1.75 1.75h5.5c.957 0 1.75-.792 1.75-1.75v-4.377a.8.8 0 0 0 0-.243V3.25c0-.957-.792-1.75-1.75-1.75zm0 1.5h5.5c.147 0 .25.102.25.25V11h-6V3.25c0-.148.102-.25.25-.25m-4.012 7.989a.75.75 0 0 0-.739.761v4.5A4.76 4.76 0 0 0 9.749 21h2v2a.76.76 0 0 0 .216.537.74.74 0 0 0 .534.223.76.76 0 0 0 .535-.223.74.74 0 0 0 .216-.537v-2h2A4.76 4.76 0 0 0 20 16.25v-4.5a.76.76 0 0 0-.216-.537.74.74 0 0 0-.535-.223.75.75 0 0 0-.75.76v4.5a3.24 3.24 0 0 1-3.25 3.25h-5.5a3.24 3.24 0 0 1-3.25-3.25v-4.5a.755.755 0 0 0-.469-.707.8.8 0 0 0-.293-.055zM9.5 12.5h6v3.75c0 .147-.102.25-.25.25h-5.5a.24.24 0 0 1-.25-.25zm3 1a.997.997 0 0 0-1 1 .997.997 0 0 0 1 1 .997.997 0 0 0 1-1 .997.997 0 0 0-1-1\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-10T14:27:37+01:00\">10 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">41 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/sound-advice-using-ai-for-your-business-heather-murray\/?scroll=1\"\n\t\t\t\t>\n\t\t\t\n\t\t\tHow AI is changing business, even for non-techie owners\u00a0\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tAI is helping business owners automate tasks, improve decisions, increase productivity, manage risks, and grow. Find out from AI expert Heather Murray how you can benefit from this technology without advanced technical skills or specialised teams. \t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-8778 post type-post status-publish format-standard has-post-thumbnail hentry category-growth-customers tag-start-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/generate-ideas-start-small-business\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/M-PESAFoundation_FY19_X3_EnterpriseManagement_31-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/M-PESAFoundation_FY19_X3_EnterpriseManagement_31-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/M-PESAFoundation_FY19_X3_EnterpriseManagement_31-768x513.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/M-PESAFoundation_FY19_X3_EnterpriseManagement_31-1213x810.jpg 1213w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-10T13:42:44+01:00\">10 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow to generate ideas for a small business\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-10168 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-business-finances tag-business-support business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/accounting-for-startups-entrepreneurs\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/11\/200122_Sage_BridgeHousing3578-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/11\/200122_Sage_BridgeHousing3578-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/11\/200122_Sage_BridgeHousing3578-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/11\/200122_Sage_BridgeHousing3578-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-07T15:59:41+01:00\">7 August, 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src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/CycleCentre_GL_060813-268-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/CycleCentre_GL_060813-268-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/CycleCentre_GL_060813-268-768x511.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/CycleCentre_GL_060813-268.jpg 999w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-07T15:46:43+01:00\">7 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tFunding options for start-ups: 10 ways to fund your business\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-8603 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-start-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/ready-to-start-a-small-business\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/10\/business-planning-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/10\/business-planning-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/10\/business-planning-768x546.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/10\/business-planning-1140x810.jpg 1140w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-07T15:24:49+01:00\">7 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tAdvice for small business owners\u00a0in the making\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover how the gearing ratio affects the ability of your small business to secure funding, investment and manage debt.<\/p>\n","protected":false},"author":1766,"featured_media":19356,"menu_order":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"[]","_yoast_wpseo_keywordsynonyms":"[\"\"]","_yoast_wpseo_primary_category":"6","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[6],"tags":[135,12],"business_type":[4,3],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[],"coauthors":[402],"class_list":["post-19352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-business-finances","tag-start-business","business_type-small-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Kieron Johnson","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/08\/Woman-calculating-the-gearing-ratio.jpg","imagine_tags":[]},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/19352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/1766"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=19352"}],"version-history":[{"count":1,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/19352\/revisions"}],"predecessor-version":[{"id":31256,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/19352\/revisions\/31256"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/19356"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=19352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=19352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=19352"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=19352"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=19352"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=19352"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=19352"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=19352"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=19352"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=19352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}