# Global cash flow

A lender's review of the business's cash flow and your household's, together.

A deal that covers its own debt comfortably can still be declined because your side of the ledger fails, which is the decline first-time buyers least expect. SBA rules require a global cash flow analysis, the business and its owners together, that reaches at least 1 to 1. The fix is on your side too: document a spouse's income, pay down a car loan or a credit line, and clear up anything on your credit report before applying rather than arguing the business's numbers harder. Ask a lender early what they include, since student loans and a mortgage are treated differently from bank to bank.

In numbers: A business covering its $300k of debt at 1.4x leaves $120k a year; if the buyer's household needs $150k for mortgage, car and living costs and earns nothing else, global coverage falls below 1 to 1 and the loan can be declined.

Source: https://searchspheresource.com/glossary/global-cash-flow
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