Question
While assessing the cred it risk of a borrower for a
Term Loan, the most important ratio to be considered is ______ _ . ÂSolution
The debt-service coverage ratio (DSCR) is a measure of the cash flow available to pay current debt obligations. The DSCR measures a borrower's cash flow vs. its debt obligations. Lenders use the DSCR to determine whether a borrower has enough net operating income to pay back loans. Â
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