{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-flow-analysis","api_url":"https://dealroom.so/api/public/glossary/cash-flow-analysis","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-flow-analysis","term":"Cash Flow Analysis","group":"Reading the business","definition":"Cash flow analysis examines a business's ability to generate enough cash to cover its expenses, including debt payments. It's the primary way lenders determine if the business can repay the loan.","what_it_means":"Lenders scrutinize historical and projected cash flow to ensure the business can service the new SBA loan. They'll look at SDE, EBITDA, and apply add-backs to understand the true owner earnings. A strong DSCR is essential for approval, indicating sufficient cash flow after debt service.","url":"https://dealroom.so/glossary/cash-flow-analysis","official_sources":[],"related":[{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"}],"related_questions":[{"question":"What specific cash flow analysis adjustments are required for a change-of-ownership with a full standby seller note?","url":"https://dealroom.so/for-lenders/questions/what-specific-cash-flow-analysis-adjustments-are-required-for-a-change-of-ownership-with-a"},{"question":"When underwriting a 7(a) loan, how does a lender ensure that personal resources of the principals are properly considered in the global cash flow analysis?","url":"https://dealroom.so/for-lenders/questions/when-underwriting-a-7-a-loan-how-does-a-lender-ensure-that-personal-resources-of-the-princ"},{"question":"Can future cash flow or profits from the acquired business count as equity injection?","url":"https://dealroom.so/for-lenders/questions/can-future-cash-flow-or-profits-from-the-acquired-business-count-as-equity-injection"},{"question":"How can an SBA 7(a) loan help with ongoing cash flow for my business?","url":"https://dealroom.so/sba-loans/basics/how-can-an-sba-7-a-loan-help-with-ongoing-cash-flow-for-my-business"},{"question":"What is the primary factor a lender considers when evaluating the cash flow from an acquired business?","url":"https://dealroom.so/sba-7a/questions/what-is-the-primary-factor-a-lender-considers-when-evaluating-the-cash-flow-from-an-acquir"},{"question":"Are there any restrictions on the use of cash flow projections for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/are-there-any-restrictions-on-the-use-of-cash-flow-projections-for-an-sba-7-a-acquisition-"}]},"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 Flow Analysis","url":"https://dealroom.so/glossary/cash-flow-analysis","source_type":"DealRoom Data"}}