{"ok":true,"canonical_url":"https://dealroom.so/glossary/business-financial-statement","api_url":"https://dealroom.so/api/public/glossary/business-financial-statement","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":"business-financial-statement","term":"Business Financial Statement","group":"Reading the business","definition":"Formal records summarizing a business's financial activities and position. These include the Profit & Loss Statement, Balance Sheet, and Cash Flow Statement, which are crucial for due diligence.","what_it_means":"You'll spend significant time reviewing the business financial statements during due diligence. Lenders rely on these to assess the business's health and repayment capacity. Scrutinize them for accuracy, consistency, and potential add-backs to understand the true owner earnings.","url":"https://dealroom.so/glossary/business-financial-statement","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What if my personal financial statement shows low liquid assets?","url":"https://dealroom.so/sba-loans/basics/what-if-my-personal-financial-statement-shows-low-liquid-assets"},{"question":"How important is my personal financial statement for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-important-is-my-personal-financial-statement-for-an-sba-7-a-loan-application"},{"question":"What if my personal financial statement shows low liquidity, but I have a strong credit score and business plan?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-financial-statement-shows-low-liquidity-but-i-have-a-strong-credit-sco"},{"question":"What happens if my personal financial statement shows low liquidity, but I have a strong credit score and business plan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-my-personal-financial-statement-shows-low-liquidity-but-i-have-a-strong-cr"},{"question":"What is a 'personal financial statement' and why is it needed for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-a-personal-financial-statement-and-why-is-it-needed-for-an-sba-7-a-loan"},{"question":"What does a 'personal financial statement' entail and why is it needed for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-does-a-personal-financial-statement-entail-and-why-is-it-needed-for-an-sba-7-a-loan"}]},"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 — Business Financial Statement","url":"https://dealroom.so/glossary/business-financial-statement","source_type":"DealRoom Data"}}