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    Debt Service Coverage Ratio (DSCR) Worksheet: 5 Year Term Loan 10 Year SBA Loan

    Uploaded by

    Arun Shakthi Ganesh
    The document is a worksheet for calculating a business's debt service coverage ratio (DSCR). It provides instructions for entering annual business expenses, existing debt payments, revenue, and details of potential new loans. It then calculates the DSCR to determine if the business can afford loan payments. A DSCR over 1 means payments can be afforded, while under 1 means they cannot. Most lenders want a DSCR of at least 1.2. The worksheet provides an example calculation showing a DSCR of 5.93 for a 5-year term loan and 4.65 for a 10-year SBA loan, indicating the business can afford both.

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    Debt Service Coverage Ratio (DSCR) Worksheet: 5 Year Term Loan 10 Year SBA Loan

    Uploaded by

    Arun Shakthi Ganesh
    192 views1 page
    The document is a worksheet for calculating a business's debt service coverage ratio (DSCR). It provides instructions for entering annual business expenses, existing debt payments, revenue, and details of potential new loans. It then calculates the DSCR to determine if the business can afford loan payments. A DSCR over 1 means payments can be afforded, while under 1 means they cannot. Most lenders want a DSCR of at least 1.2. The worksheet provides an example calculation showing a DSCR of 5.93 for a 5-year term loan and 4.65 for a 10-year SBA loan, indicating the business can afford both.

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    DSCR worksheet

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    DSCR WorkSheet

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    The document is a worksheet for calculating a business's debt service coverage ratio (DSCR). It provides instructions for entering annual business expenses, existing debt payments, revenue, and details of potential new loans. It then calculates the DSCR to determine if the business can afford loan payments. A DSCR over 1 means payments can be afforded, while under 1 means they cannot. Most lenders want a DSCR of at least 1.2. The worksheet provides an example calculation showing a DSCR of 5.93 for a 5-year term loan and 4.65 for a 10-year SBA loan, indicating the business can afford both.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    192 views1 page

    Debt Service Coverage Ratio (DSCR) Worksheet: 5 Year Term Loan 10 Year SBA Loan

    Uploaded by

    Arun Shakthi Ganesh
    The document is a worksheet for calculating a business's debt service coverage ratio (DSCR). It provides instructions for entering annual business expenses, existing debt payments, revenue, and details of potential new loans. It then calculates the DSCR to determine if the business can afford loan payments. A DSCR over 1 means payments can be afforded, while under 1 means they cannot. Most lenders want a DSCR of at least 1.2. The worksheet provides an example calculation showing a DSCR of 5.93 for a 5-year term loan and 4.65 for a 10-year SBA loan, indicating the business can afford both.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Debt Service Coverage Ratio (DSCR) Worksheet

    Use this worksheet to calculate your debt service coverage ratio.


    Enter your business expenses, existing debt payments, and revenue below. If you plan on
    borrowing additional funds, you can enter that balance below, too.
    DSCR is used by lenders to determine your ability to make loan payments. Under 1 means you can
    not afford the loan payment. Over 1 means you can afford the loan payment. Most lenders want to
    see a DSCR of 1.2 or higher.

    5 Year Term Loan 10 Year SBA loan


    Annual Gross Income $2,000,000 $ 1,500,000.00
    Expenses - Entered as Annual Costs
    Rent $ 20,000.00 $ 20,000.00
    Utilities $ 5,000.00 $ 5,000.00
    Payroll $ 350,000.00 $ 350,000.00
    Taxes
    Inventory $ 500,000.00 $ 500,000.00
    Supplies $ 35,000.00 $ 35,000.00
    Credit Card Payments
    Short Term Loan Payments $ 80,000.00 $ 80,000.00
    Merchant Cash Advance Payments $ 150,000.00 $ 150,000.00
    Miscellaneous Business Expenses $ 50,000.00 $ 50,000.00
    Annual Operating Expenses $ 1,190,000.00 $ 1,190,000.00
    Net Operating Income $ 810,000.00 $ 310,000.00
    Total Capital in New Loan
    $ 500,000.00 $ 500,000.00
    (including additional funding)
    Typical Interest Rate 13% 6%
    Origination Fees of New Loan (Assuming 5%) $ 25,000.00 $ 25,000.00
    Total Annual Loan Payments of New Loan
    $ 136,518.44 $ 66,612.30
    (Debt Service)

    Estimated Monthly Payments $ 11,376.54 $ 5,551.03


    Debt Service Coverage Ratio 5.93 4.65

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