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February 16, 2023

Debt Service Definition: Key Components, Calculations, and Ratios

In some cases, lenders may require companies to hold a debt service reserve account (DSRA). The DSRA can act as a safety measure for lenders to ensure that the company’s future payments will be met. Individuals may need to service debts such as mortgage, credit card debt, or student loans. The ability to service debt for both companies and individuals…

Bookkeeping 0 5 min read
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