{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-flow-cycle","api_url":"https://dealroom.so/api/public/glossary/cash-flow-cycle","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-cycle","term":"Cash flow cycle","group":"Reading the business","definition":"This describes the movement of cash into and out of a business over a period, from initial expenditures to collecting revenue from sales.","what_it_means":"Understanding the target business's cash flow cycle is critical for managing working capital post-acquisition. A long cash flow cycle means more cash is tied up in inventory or accounts receivable, requiring more working capital to bridge the gap. Analyze the cycle to project your needs and avoid liquidity issues.","url":"https://dealroom.so/glossary/cash-flow-cycle","official_sources":[],"related":[{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"accounts-receivable","term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"}],"related_questions":[{"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-"},{"question":"Can I use an SBA 7(a) loan for my business's daily operating expenses or cash flow?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-my-business-s-daily-operating-expenses-or-cash-flow"},{"question":"How does a lender evaluate the reasonableness of a borrower's projections for future revenue and cash flow?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-evaluate-the-reasonableness-of-a-borrower-s-projections-for-future-reven"}]},"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 cycle","url":"https://dealroom.so/glossary/cash-flow-cycle","source_type":"DealRoom Data"}}