{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-flow-projections","api_url":"https://dealroom.so/api/public/glossary/cash-flow-projections","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-projections","term":"Cash Flow Projections","group":"Reading the business","definition":"These are forecasts of a business's future cash inflows and outflows, showing its expected liquidity. As a buyer, your lender will require robust projections to prove the business can repay the 7(a) loan.","what_it_means":"Lenders will scrutinize your cash flow projections, especially for the first 1-2 years post-acquisition. Base them on realistic assumptions, historical performance, and your post-acquisition business plan. Be prepared to defend your numbers, as they directly impact the lender's Credit Risk assessment and your ability to secure the loan.","url":"https://dealroom.so/glossary/cash-flow-projections","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"credit-risk","term":"Credit Risk","url":"https://dealroom.so/glossary/credit-risk"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"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":"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"},{"question":"How does the SBA evaluate the reasonableness of a borrower's projections for future revenue and cash flow?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-reasonableness-of-a-borrower-s-projections-for-future-revenu"},{"question":"How does a lender evaluate the reasonableness of a borrower's cash flow projections for a 7(a) loan approval?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-evaluate-the-reasonableness-of-a-borrower-s-cash-flow-projections-for-a-"},{"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"}]},"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 Projections","url":"https://dealroom.so/glossary/cash-flow-projections","source_type":"DealRoom Data"}}