Question 1

What is a Debt Service Coverage Ratio (DSCR)?

Accepted Answer

DSCR measures your business's ability to repay debt from operating income. A DSCR of 1.25 means your business generates $1.25 for every $1.00 of debt obligation. Most lenders require a minimum DSCR of 1.20–1.25. If yours is below that, you may face denial or require additional collateral — which is something Williamspods helps identify before you apply.

Question 2

Why would a lender deny my loan application?

Accepted Answer

Common reasons include insufficient cash flow, low DSCR, too much existing debt, incomplete documentation, inconsistent tax returns, weak collateral, poor credit history, or unclear use of funds. Many of these are fixable before you apply — which is precisely what a Williamspods loan readiness review addresses.

Question 3

What documents does a bank typically require for a commercial loan?

Accepted Answer

Most commercial lenders require 2–3 years of business tax returns, 2–3 years of personal tax returns, year-to-date P&L and balance sheet, 3–12 months of business bank statements, a debt schedule, business licence and formation documents, and a description of the loan purpose. SBA loans often require additional documentation including a business plan and collateral documentation.

Question 4

What makes a healthcare practice loan different?

Accepted Answer

Healthcare practices have unique revenue cycles — income often comes through insurance reimbursements with 30–90 day delays, creating cash flow patterns that look different from standard businesses. Lenders evaluate accounts receivable ageing, payer mix, staffing ratios, and practice value differently. Williamspods understands how to present this correctly to a healthcare-focused lender.

Question 5

What is global cash flow and why does it matter?

Accepted Answer

Global cash flow is a combined review of both your business and personal income and obligations. Lenders use it to determine whether you — as an individual and business owner — have the total financial capacity to service the proposed debt. If your personal obligations consume most of your business income, your global cash flow may be insufficient even if your business looks profitable on paper.

Question 6

How is an SBA loan different from a conventional business loan?

Accepted Answer

SBA loans are partially guaranteed by the U.S. Small Business Administration, which allows lenders to offer better terms than they might otherwise provide. However, SBA loans require thorough documentation, a clear use-of-funds statement, and strict repayment logic. The SBA 7(a) program is the most common and supports working capital, equipment, acquisition, and expansion financing up to $5 million.

Question 7

When should I engage Williamspods — before or after finding a lender?

Accepted Answer

Before, ideally 60–90 days before you plan to approach any lender. Most loan problems are fixable if you catch them early. By the time you are sitting across from an underwriter, it is too late to strengthen your financials. Williamspods helps you identify and resolve issues while you still have time to act.

Lending knowledge for business owners