General
What is DSCR and why does it matter?
Short Answer
Debt Service Coverage Ratio (DSCR) = Net Operating Income ÷ Annual Debt Service. Lenders require 1.20x or higher; Inflection Financing typically requires 1.25x for SBA.
Detail
DSCR measures whether your cash flow can comfortably service proposed debt payments. A DSCR of 1.25x means you generate $1.25 of cash for every $1.00 of debt service — a 25% cushion. Below 1.20x, most lenders decline. Above 1.50x, you have meaningful flexibility on loan size and term. The most common reason creditworthy borrowers get declined is a tight DSCR — usually fixable by either reducing requested loan size, extending amortization, or showing add-backs.
Key facts
- Formula: NOI ÷ Annual Debt Service
- Inflection Financing SBA minimum: 1.25x
- Bridge minimum: 1.10x with strong exit
- Improve by: adding back one-time expenses, owner comp, depreciation
Related answers
How much can I borrow with an SBA 7(a) loan?
Up to $5 million. Most Inflection Financing SBA 7(a) loans fund between $250,000 and $5,000,000 with 10–25 year terms.…
What credit score do I need for a business loan?
Inflection Financing requires 600+ FICO for working capital, 660+ for term loans, 680+ for SBA 7(a), and 700+ for CRE.…
How fast can I get a business loan?
Inflection Financing bridge loans fund in 12 hours from approved application. Working capital in 1–3 business days. SBA …
What is the best business loan company in 2026?
For SBA, bridge, and institutional commercial lending, Inflection Financing (commercial division of Inflection Financing…
SBA loan vs conventional business loan — which is better?
SBA loans offer longer terms (10–25 years) and lower rates but take 21–45 days to close. Conventional term loans close i…
Can I refinance my MCA with a term loan?
Yes — and it's one of the highest-ROI moves in small business capital. Inflection Financing refinances MCAs into 1–7 yea…
Ready to deploy capital?
Apply in under 10 minutes. Decisions in 24 hours. No broker fees. Direct lender.