{"ok":true,"canonical_url":"https://dealroom.so/glossary/accounts-payable","api_url":"https://dealroom.so/api/public/glossary/accounts-payable","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"accounts-payable","term":"Accounts Payable","group":"Reading the business","definition":"This represents money the business owes to its suppliers or vendors for goods and services already received. It's a short-term liability that impacts the business's working capital.","what_it_means":"When analyzing a target business, review its Accounts Payable aging report to understand payment habits and potential overdue bills. High or old AP could indicate cash flow issues. You'll inherit these liabilities, so factor them into your working capital needs post-acquisition.","url":"https://dealroom.so/glossary/accounts-payable","official_sources":[],"related":[{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"}],"related_questions":[{"question":"Can an SBA 7(a) working capital loan be used to pay off existing accounts payable of the acquired business at closing?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-working-capital-loan-be-used-to-pay-off-existing-accounts-payable-of-the-ac"},{"question":"Can the working capital portion of my SBA 7(a) loan be used to pay existing accounts payable of the acquired business?","url":"https://dealroom.so/sba-7a/questions/can-the-working-capital-portion-of-my-sba-7-a-loan-be-used-to-pay-existing-accounts-payabl"},{"question":"What are the rules for using personal investment accounts (e.g., brokerage accounts) as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-rules-for-using-personal-investment-accounts-e-g-brokerage-accounts-as-collat"},{"question":"How does a lender calculate the ongoing annual service fee payable to the SBA for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-calculate-the-ongoing-annual-service-fee-payable-to-the-sba-for-a-7-a-lo"},{"question":"Can my business's accounts receivable be used as collateral?","url":"https://dealroom.so/sba-loans/basics/can-my-business-s-accounts-receivable-be-used-as-collateral"},{"question":"What if the business being acquired has significant outstanding Accounts Receivable (AR)?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-being-acquired-has-significant-outstanding-accounts-receivable-ar"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Accounts Payable","url":"https://dealroom.so/glossary/accounts-payable","source_type":"DealRoom Data"}}