Different types of lenders have different requirements for minimum debt service coverage ratio — there is no universal industry standard. That said, a DSCR of 1.25 to 1.50 is a typical minimum for most lenders, while a DSCR of 2.0 would be considered very strong. A DSCR of 1.25 means that a business’s Net Operating Income (NOI) is 125% of its annual debt service payments. In simpler terms, it means the business generates 25% more income than is needed to cover the debt obligations.