Glossary · Reading the business
In short
This refers to the total amount of principal and interest payments a business needs to make on its debts over a specific period. It's crucial for assessing a business's ability to repay a loan.
Before buying, you must project if the business's Adjusted Net Operating Income can cover the new loan's Debt Service Requirements. Lenders use the Debt Service Coverage Ratio (DSCR) to measure this. Insufficient cash flow to meet these requirements is a major red flag for lenders and a significant risk for you.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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