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SMALL BUSINESS GLOSSARY


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D
Current TermDebt Service Coverage Ratio (Or Debt Coverage Ratio)
Debt Service Coverage Ratio (Or Debt Coverage Ratio)
Measures a property's ability to cover monthly payments, defined as the ratio of net operating income over the loan payments. A DSCR of less than 1.0 means that there is insufficient cash flow generated by the property to cover required debt payments.