What is debt-service coverage ratio and why does the banker care?

A YouTube viewer asked me, ‘…when my banker says that the business is overpriced and the debt-service coverage ratio doesn’t work, what does it mean and should I just try other banks?’

Basically, bankers are concerned that there is enough cash left after expenses to make their loan payments... plus a little extra for unforeseen expenses. Pretty good idea, eh?

So how can an owner ask so much for a business that there isn’t even enough cash to make the loan payments? I’ve seen it happen over and over and over and over and over again.

Watch and see how this happens and why you need to understand how to spot these bad deals before they waste a bunch of your time and your bankers.

Learn more in this video I made about DSCR.. https://youtu.be/Q1yOzL73zCo

Educate yourself about buying a business before you waste a bunch of your time and money on crappy deals.  Learn more about my online course at www.BusinessBuyerAdvantage.com.

My comprehensive program has been used by hundreds of people who now know how to avoid crappy deals and save their time.  There’s no risk at all for you to enroll as the program comes with a 30 day money-back guarantee.  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

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**Summer reading special. Get all 4 of my books (Invest Local, Franchise Warnings, Credit Card Advantage and How To Sell My Own Business) for one low price with FREE WORLDWIDE SHIPPING. Just in time for summer.  [Order here]

I’m coming to Toronto on May 10, 2017.  Seats are already filling up.  Find my current and future live events here: http://davidbarnett.eventbrite.ca .    

Thanks and I’ll see you next time.