Accounting / July 19, 2018 / Sharon Hardin
The DSCR is the ratio of cash your small business has available for paying or servicing its debt. Debt payments include making principal and interest payments on the loan you are requesting. Generally speaking, if your DSCR ratio is above 1, your business has enough income to meet its debt requirements.
Other types of working capital include Initial working capital and Regular working capital. The capital required by the promoters to initiate the business is known as initial working capital. On the other hand, regular working capital is one that is required by the firm to carry on its operations effectively.
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