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Tag: Why is a Debt Service Coverage Ratio (DSCR) Needed?

9
Jul

Why is a Debt Service Coverage Ratio (DSCR) Needed?

DSCR, or Debt Service Coverage Ratio, is a calculation used typically in commercial lending transactions involving real estate. It measures a property’s cash flow compared to its current debt obligations. The evaluation of a company’s DSCR gives the lender a general idea on whether a business can pay a loan back on time and with interest. The higher the DSCR

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