{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-flow-after-debt-service","api_url":"https://dealroom.so/api/public/glossary/cash-flow-after-debt-service","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"cash-flow-after-debt-service","term":"Cash flow after debt service","group":"Reading the business","definition":"What's left for you each year after loan payments. The first number to check on any listing.","what_it_means":"Cash flow after debt service is the buyer's real return on the deal — it's what you take home after the loan payment clears. On a business with $200K SDE and a $120K annual loan payment, you're left with $80K before taxes. That's your number to live on and build from. Run this calculation before you fall in love with any listing, and remember to factor in a market-rate salary if SDE already includes your compensation.","url":"https://dealroom.so/glossary/cash-flow-after-debt-service","official_sources":[],"related":[{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"amortization","term":"Amortization","url":"https://dealroom.so/glossary/amortization"}],"related_questions":[{"question":"What are the consequences if the borrower's debt service coverage ratio (DSCR) falls below the lender's minimum after closing?","url":"https://dealroom.so/sba-7a/questions/what-are-the-consequences-if-the-borrower-s-debt-service-coverage-ratio-dscr-falls-below-t"},{"question":"Does the SBA require a specific debt service coverage ratio (DSCR) for approval?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-a-specific-debt-service-coverage-ratio-dscr-for-approval"},{"question":"Can future cash flow or profits from the acquired business count as equity injection?","url":"https://dealroom.so/for-lenders/questions/can-future-cash-flow-or-profits-from-the-acquired-business-count-as-equity-injection"},{"question":"When is a debt service coverage ratio waiver or exception possible for an acquisition?","url":"https://dealroom.so/for-lenders/questions/when-is-a-debt-service-coverage-ratio-waiver-or-exception-possible-for-an-acquisition"},{"question":"How can an SBA 7(a) loan help with ongoing cash flow for my business?","url":"https://dealroom.so/sba-loans/basics/how-can-an-sba-7-a-loan-help-with-ongoing-cash-flow-for-my-business"},{"question":"How does a seller note on full standby affect the debt service coverage ratio calculation?","url":"https://dealroom.so/sba-7a/questions/how-does-a-seller-note-on-full-standby-affect-the-debt-service-coverage-ratio-calculation"}],"related_tool":{"label":"SBA 7(a) payment calculator","url":"https://dealroom.so/sba-7a/calculator"}},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Cash flow after debt service","url":"https://dealroom.so/glossary/cash-flow-after-debt-service","source_type":"DealRoom Data"}}