Debt Service
The total amount of principal and interest a business owes on its debt obligations over a given period, typically measured monthly or annually.
Debt service covers every scheduled loan and lease payment a business is responsible for, and it’s the denominator in coverage ratios like DSCR, which compare available cash flow against this total obligation.
When a business takes on new financing, lenders evaluate how the added debt service affects the business’s total obligations, not just whether the new loan alone looks affordable in isolation.
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.