{"ok":true,"canonical_url":"https://dealroom.so/glossary/consignment","api_url":"https://dealroom.so/api/public/glossary/consignment","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":"consignment","term":"Consignment","aka":"Selling on consignment","group":"Reading the business","definition":"This is an arrangement where a seller (consignor) provides goods to a retailer (consignee) to sell, but the consignor retains ownership until the goods are sold.","what_it_means":"When reviewing a business, understand if any inventory is held on consignment or if the business itself sells goods on consignment. This affects your working capital and inventory valuation. Consigned inventory doesn't belong to the business, so it shouldn't be counted as an asset for collateral or valuation purposes.","url":"https://dealroom.so/glossary/consignment","official_sources":[],"related":[{"slug":"consignment-agreement","term":"Consignment Agreement","url":"https://dealroom.so/glossary/consignment-agreement"},{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"slug":"accounts-receivable","term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"}],"related_questions":[{"question":"What if a business seeking a 7(a) loan derives a significant portion of its revenue from selling products on consignment?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-seeking-a-7-a-loan-derives-a-significant-portion-of-its-revenue-from-se"}]},"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 — Consignment","url":"https://dealroom.so/glossary/consignment","source_type":"DealRoom Data"}}