# Fixed charge coverage ratio (FCCR)

Cash flow measured against every fixed obligation, not just the debt.

Some lenders underwrite to this stricter test instead of plain [DSCR](https://searchspheresource.com/glossary/dscr), folding in fixed obligations like lease payments and [owner draws](https://searchspheresource.com/glossary/owner-draw) that DSCR leaves out. A deal that clears one ratio can fail the other, so ask which test your lender uses before you build an offer around a coverage number.

In numbers: A business with $600k of cash flow before rent, against $360k of debt service and a $180k lease, shows a 1.11x FCCR.

Source: https://searchspheresource.com/glossary/fccr
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