How we estimate: what “on our model” means
Many BizFisher pages show a cash-on-cash return or a debt coverage ratio (DSCR) next to a listing, with the words “on our model.” Those figures are estimates we work out from the asking price and cash flow published in the listing, using one fixed set of loan assumptions. They aren't a valuation, a loan offer or advice, and we don't check the seller's numbers.
Estimates only — not financial, tax, or legal advice. BizFisher is not a lender.
The default loan assumptions
- 30% down payment, so the loan covers 70% of the asking price.
- 7.5% interest rate.
- 10-year loan, paid monthly and fully amortized.
- No closing costs, working capital, seller note or owner salary are added.
These are example terms, not quoted current rates. Real loans, including SBA-backed loans, can have different down payments, rates, fees and terms. To try your own, use the free business acquisition calculator, which starts from the same defaults.
Cash-on-cash and DSCR
- Yearly debt service = monthly loan payment × 12
- Cash-on-cash = (yearly cash flow − yearly debt service) ÷ down payment
- DSCR = yearly cash flow ÷ yearly debt service
“Cash flow” is the yearly figure the listing publishes, which may be called cash flow, SDE or seller's discretionary earnings. It often includes the owner's pay, so the estimate can look better than what a buyer who hires a manager would keep. Taxes, equipment replacement and rent changes aren't modeled.
Some pages count listings that “clear 20%” cash-on-cash or “clear 1.5x” DSCR on our model. Those are screening lines, not recommendations.
The 100% display cap for unusual figures
A cash-on-cash estimate above 100% would mean the down payment pays itself back in under a year. That almost always points to a cash flow figure that's overstated, leaves out the owner's pay or contains a typo. So we don't show estimates above 100% (or below -25%) on listings and don't count them in page totals. Those listings say the figures look unusual instead, and you should check the listing and the books yourself.
No estimates for cannabis businesses
Bank and SBA financing is typically unavailable for cannabis businesses, so a loan-based estimate wouldn't mean much. We don't show cash-on-cash or DSCR for them, and they aren't counted in the “clears” totals.
Placeholder prices
Some listings show a placeholder asking price, such as $1, $1,000 or “ask TBD,” instead of a real one. We treat any asking price under $10,000 as no price: there's no estimate, and the listing isn't included in business counts.
Where the listings come from
Listings come from public listing sites and brokers. We gather them into one search, sort them into categories and places, and show operating businesses separately from commercial property. We don't verify what a seller or broker publishes, and a listing can change or sell before our pages update, so always confirm the details with the broker. Counts on city, county and state pages include operating businesses with a listed price of $10,000 or more; commercial property is counted in its own section.
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