{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-equivalent","api_url":"https://dealroom.so/api/public/glossary/cash-equivalent","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":"cash-equivalent","term":"Cash Equivalent","group":"Reading the business","definition":"This refers to highly liquid assets easily convertible to cash, like short-term government bonds or money market funds. For a buyer, knowing what counts as cash equivalent helps assess a business's true liquidity.","what_it_means":"When reviewing a target business's balance sheet, differentiate between actual cash and cash equivalents. These can quickly be turned into cash to cover short-term liabilities. Understand a seller's true cash position for working capital needs post-acquisition.","url":"https://dealroom.so/glossary/cash-equivalent","official_sources":[],"related":[{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"marketable-securities","term":"Marketable securities","url":"https://dealroom.so/glossary/marketable-securities"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"What specific certifications on SBA Form 1920 (or E-Tran equivalent) relate to credit elsewhere?","url":"https://dealroom.so/for-lenders/questions/what-specific-certifications-on-sba-form-1920-or-e-tran-equivalent-relate-to-credit-elsewh"},{"question":"Which specific lender certifications are required on the Lender's Application for Guaranty (or its E-Tran equivalent) to ensure loan eligibility?","url":"https://dealroom.so/for-lenders/questions/which-specific-lender-certifications-are-required-on-the-lender-s-application-for-guaranty"},{"question":"What specific lender certifications are required on the Lender's Application for Guaranty (SBA Form 1920, or its current equivalent in E-Tran)?","url":"https://dealroom.so/for-lenders/questions/what-specific-lender-certifications-are-required-on-the-lender-s-application-for-guaranty-"},{"question":"Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?","url":"https://dealroom.so/sba-7a/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-"},{"question":"Can cash in the business bank account count as collateral?","url":"https://dealroom.so/sba-loans/basics/can-cash-in-the-business-bank-account-count-as-collateral"},{"question":"Is there a minimum cash portion for the equity injection?","url":"https://dealroom.so/sba-7a/questions/is-there-a-minimum-cash-portion-for-the-equity-injection"}]},"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 — Cash Equivalent","url":"https://dealroom.so/glossary/cash-equivalent","source_type":"DealRoom Data"}}