Will a bank fund this?
Roiify scores every project against the same Debt Service Coverage Ratio (DSCR) that UK and US bank underwriters apply to small-business loan applications. Find out where you stand before you sit down with a lender.
The DSCR scoring bands
DSCR = Monthly Net Operating Cash ÷ Monthly Loan Repayment. It tells a lender how much headroom your project has after servicing the debt.
- Lender-strong≥ 1.5×
Comfortable for British Business Bank–backed schemes and challenger banks. Repayments are well covered even after stress testing.
- Bankable1.25 – 1.49×
Clears the typical high-street UK threshold. Strong enough for unsecured SME loans up to £250k with established lenders.
- Marginal1.0 – 1.24×
Below most mainstream policies. Specialist lenders, government-guaranteed schemes or personal guarantees may bridge the gap.
- Below threshold< 1.0×
The project doesn't cover its own repayments. Rework pricing, volumes, or borrow less before approaching a lender.
How underwriters actually decide
DSCR is the headline number, but it's never the only one. UK SME lenders — High Street banks, Funding Circle, iwoca, Allica, Tide, Starling and the British Business Bank's accredited partners — also weigh:
How many months until the project recovers its upfront cost. < 24 months reads as low-risk.
What happens to DSCR if revenue drops 15% and costs rise 10%. Roiify's Stress Test runs this for you.
Personal credit, trading history, accounts filed — sit outside the model but matter heavily.
Lenders want the maths shown. Export Roiify's Premium PDF to attach to your application pack.
Worked example
A café owner wants to buy a £12,000 espresso machine, financed over 60 months at 8.9% APR.
- • Monthly loan repayment: £248
- • Extra coffees generated: £900/mo net (revenue – beans – maintenance)
- • DSCR = £900 ÷ £248 = 3.63× → Lender-strong
A £900/mo net cash buffer covers £248 of debt service more than three times over. This loan would sail through underwriting at any mainstream UK lender.
Frequently asked
What is Debt Service Coverage Ratio (DSCR)?+
DSCR is the ratio of a project's monthly net operating cash to its monthly loan repayment. UK and US bank underwriters use it as the headline test of whether a business can comfortably service the debt. A ratio of 1.0 means it just covers; banks typically require ≥ 1.25, with government-backed schemes preferring 1.5 or higher.
How do banks assess a small-business loan application?+
Lenders look at five things: (1) DSCR — can the project's cash cover repayments, (2) Payback period — how long until the investment recovers its cost, (3) Sensitivity / stress test — does it still work if revenue drops 15%, (4) Owner credit history and trading record, and (5) Security or personal guarantees. Roiify quantifies the first three so you arrive prepared.
What UK schemes back small-business loans?+
The British Business Bank runs the Recovery Loan Scheme and Growth Guarantee Scheme — government partial guarantees that let high-street and challenger lenders extend credit to SMEs they might otherwise decline. Schemes change; check the British Business Bank Finance Hub for current programmes.
Will using Roiify guarantee a loan approval?+
No. Roiify is an independent ROI calculator, not a credit broker or lender. We model the same financial metrics underwriters use, so you can walk into a lender conversation prepared — but every lender has its own credit policy, and approval depends on the full picture.
Get your DSCR in under a minute
Enter your investment, then your loan terms. Roiify scores it the way a bank would.
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