What is Debt Service Coverage Ratio (DSCR)?

Debt Service Coverage Ratio (DSCR) is the amount of cash flow a company has to cover its debts over the period of one year. The ratio is the net operating income compared to the amount of debt being serviced including interest, principal, and lease payments. It has become a popular benchmark for determining a company’s approval for a loan. In smaller companies, the owner’s salary must be covered too. Lenders typically like to see a DSCR of 1.25 or higher.

Audio Definition/Pronunciation

A Recap of the “Debt is Not a Four-Letter Word” Workshop

A Recap of the “Debt is Not a Four-Letter Word” Workshop

Jennifer Palmer, CEO of Gerber Finance, joined a panel with Mike Fake, CFO of Stasher, and Jill Voss, Founder of Baby Gourmet during the “Debt…
How Private Equity and Debt Financing Can Be the Perfect Mix

How Private Equity and Debt Financing Can Be the Perfect Mix

There are many options available to business owners to fund their businesses. What may not be widely known is that two popular forms of financing…
How Stasher Found Sustainable Success with Debt Financing

How Stasher Found Sustainable Success with Debt Financing

The “Debt is Not a Four-Letter Word” workshop at FounderMade’s D2C Finance & Funding Summit in June 2021 was very informative and inspiring; so much…

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