The CommonWealth Group

Nothing upsets me more than working on a multiple-entity client and coming across this type of negligence. We see this way too often.

At the end of the day, you’re hiring a professional that you trust to advise you on what you should do because you are focused on your sales, your employees, and your customers.

Unfortunately, some business owners get burned, or even taken out of business, because they hired the wrong advisor.

This happens to so many business owners from across the country. We’re constantly dealing with this level of problems.

We solve them, and there’s no more rewarding feeling than giving a client a sense of relief, confidence, and stability so they can do what they do best.

Most business owners focus on profit but ignore one of the most important numbers that determines if a bank will lend them money: their Debt Service Coverage Ratio (DSCR).

Your DSCR measures how much cash your business generates compared to how much you owe in principal and interest. It tells lenders if you can afford your debt.

Here’s how to calculate it:
Net Operating Income ÷ Total Debt Service (Principal + Interest).

A ratio of 1.25 or higher is ideal. It means your business earns 25% more than it owes on its loans. Anything below that tells the bank you are overleveraged and risky.

I review hundreds of financial statements every year, and most business owners don’t even know this number, yet it decides their ability to borrow, expand, or even survive.

Understanding your DSCR helps you make smarter decisions. You know how much debt you can handle, when to pay down balances, and when to invest in growth.