DSCR is the single number that most often decides how much a lender will approve. It's worth understanding before you apply.
- ✓DSCR = cash flow available to pay debt ÷ the debt payments.
- ✓Lenders generally want ~1.15 or higher.
- ✓Raising cash flow or extending term improves it.
What DSCR measures
It compares the cash your business generates to the debt payments it owes. A DSCR of 1.25 means you produce $1.25 of cash for every $1 of debt service — a comfortable cushion.
Why lenders care
It's their clearest read on whether you can absorb a new payment without stress. Most look for at least 1.15, with more cushion offsetting other weaknesses.
How to improve it
Increase net cash flow, reduce existing debt, or choose a longer term to lower the monthly payment. Our affordability calculator gives you a quick estimate.
We help small business owners understand funding options, strengthen their profile, and get matched to the right lender — across every credit profile.