DEFINITION
DSCR is a business's net operating income divided by its total debt payments, showing whether it earns enough to cover its debt.
A DSCR above 1.25 is a common benchmark for traditional lenders.
GLOSSARY
DSCR is a business's net operating income divided by its total debt payments, showing whether it earns enough to cover its debt.
A DSCR above 1.25 is a common benchmark for traditional lenders.