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BUSINESS FINANCING GLOSSARY

Debt Service Coverage Ratio (DSCR)

Net operating income divided by total debt payments. Above 1.0 means you generate more than enough to cover debt; lenders often want 1.15–1.25+.

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Related terms

Annual Revenue→Your total gross sales over a 12-month period, before expenses. A core input lenders use to size how much you can borrow.Gross Revenue→Total sales before any expenses or deductions. The headline “top line” lenders start from when sizing an offer.Net Income (Net Profit)→What’s left after all expenses, interest, and taxes are subtracted from revenue — the “bottom line.”

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