Fixed charge coverage ratio (FCCR)

A coverage ratio that measures cash flow against all fixed obligations, including debt service, lease payments, and often an owner's draw, rather than debt service alone.

Some lenders underwrite to this stricter test instead of DSCR, and a deal that clears one can fail the other.

In numbers: A business with $200k of cash flow against $120k of debt service and a $60k lease shows a 1.11× FCCR.