{"ok":true,"canonical_url":"https://dealroom.so/glossary/credit-memos","api_url":"https://dealroom.so/api/public/glossary/credit-memos","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":"credit-memos","term":"Credit memos","group":"Reading the business","definition":"These are documents issued by a seller to a buyer, reducing the amount the buyer owes, often for returns, allowances, or billing errors. They impact revenue reporting.","what_it_means":"Review credit memos during Due diligence to understand the frequency and reasons for customer adjustments. High volumes could indicate product quality issues, customer service problems, or aggressive revenue recognition practices that inflate the seller's reported income on the Profit and Loss Statement. Dig into the Audit trail.","url":"https://dealroom.so/glossary/credit-memos","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"audit-trail","term":"Audit trail","url":"https://dealroom.so/glossary/audit-trail"}],"related_questions":[{"question":"What if my personal credit report shows a recent late payment on a minor credit card?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-report-shows-a-recent-late-payment-on-a-minor-credit-card"},{"question":"Does having many recent credit inquiries on my personal credit report affect SBA 7(a) loan approval chances?","url":"https://dealroom.so/sba-7a/questions/does-having-many-recent-credit-inquiries-on-my-personal-credit-report-affect-sba-7-a-loan-"},{"question":"Does the sunset of the SBSS score impact the requirement for a credit memo or documented credit analysis for 7(a) Small Loans?","url":"https://dealroom.so/for-lenders/questions/does-the-sunset-of-the-sbss-score-impact-the-requirement-for-a-credit-memo-or-documented-c"},{"question":"Can a credit card cash advance be used for my down payment?","url":"https://dealroom.so/sba-loans/basics/can-a-credit-card-cash-advance-be-used-for-my-down-payment"},{"question":"What is the 'credit elsewhere' test for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-credit-elsewhere-test-for-an-sba-7-a-loan"},{"question":"What credit score is generally needed for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-credit-score-is-generally-needed-for-an-sba-7-a-loan"}]},"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 — Credit memos","url":"https://dealroom.so/glossary/credit-memos","source_type":"DealRoom Data"}}