debt service

debt service definition - business

debt service

Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific period. A firm's ability to service its debt is estimated by comparing cash flow with debt service.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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