{"ok":true,"canonical_url":"https://dealroom.so/glossary/deferred-revenue","api_url":"https://dealroom.so/api/public/glossary/deferred-revenue","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":"deferred-revenue","term":"Deferred Revenue","group":"Reading the business","definition":"This is money a business has already received for goods or services it hasn't yet delivered. It's a liability, not earned income, which means the business owes that value to customers in the future.","what_it_means":"When buying a business, you inherit these obligations. You need to understand the amount of deferred revenue and factor in the future cost of delivering those services or products, as it impacts the working capital required post-acquisition.","url":"https://dealroom.so/glossary/deferred-revenue","official_sources":[],"related":[{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"financial-performance","term":"Financial Performance","url":"https://dealroom.so/glossary/financial-performance"}],"related_questions":[{"question":"What if the business I'm buying has existing deferred revenue or unearned income?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-existing-deferred-revenue-or-unearned-income"},{"question":"How does a lender underwrite a business acquisition with existing deferred revenue or unearned income?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-underwrite-a-business-acquisition-with-existing-deferred-revenue-or-unea"},{"question":"Can a partial equity injection come from a deferred management bonus from my current employer?","url":"https://dealroom.so/sba-7a/questions/can-a-partial-equity-injection-come-from-a-deferred-management-bonus-from-my-current-emplo"},{"question":"How does a lender assess deferred maintenance or capital expenditure needs of an acquired business?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-deferred-maintenance-or-capital-expenditure-needs-of-an-acquired-"},{"question":"Can a seller note with deferred payments but no interest count as full standby for equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-seller-note-with-deferred-payments-but-no-interest-count-as-full-standby-for-equity-"},{"question":"How does declining revenue during due diligence impact loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-declining-revenue-during-due-diligence-impact-loan-approval"}]},"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 — Deferred Revenue","url":"https://dealroom.so/glossary/deferred-revenue","source_type":"DealRoom Data"}}