2 min read
What DSCR measures
DSCR divides the cash available to service debt by the debt payments due in a period. A ratio of 1.0 means you exactly cover them; lenders typically want a cushion — often 1.25 or more — so a bad month does not tip you into shortfall. See the DSCR explainer.
Improving it
Raise profitability, cut unnecessary costs, or lengthen the term to reduce the monthly figure — all lift the ratio. Test the effect with the affordability calculator before you apply.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
What DSCR do lenders want?
Often at least 1.25, meaning your cash available for debt is 25% more than the payments due, giving a cushion for a bad month.
How do I improve my DSCR?
Increase profit, cut costs, or extend the term to lower the monthly payment. Each lifts the ratio and strengthens affordability.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.