Repayment Capacity Evaluation is the assessment of the borrower’s ability to repay debt from cash flows, profits, and available resources. It uses DSCR, cash accruals, obligations, account conduct, and projections. It is central to underwriting for term and working capital loans. In underwriting, it provides business and banking context that supports facility structuring, risk assessment and credit-decision documentation. It should be reviewed with the borrower’s actual cash flows, existing exposure, repayment behaviour and the purpose for which the facility is being used. For example, a borrower with good collateral can still be risky if projected cash flows cannot cover instalments and existing obligations. It matters because the same borrower can look different depending on banking arrangement, transaction behaviour, documentation quality and business context. The common caution is to document the source, date, assumptions and credit impact so the term does not become a vague narrative label.