{"ok":true,"canonical_url":"https://dealroom.so/glossary/financial-obligation","api_url":"https://dealroom.so/api/public/glossary/financial-obligation","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":"financial-obligation","term":"Financial obligation","group":"Reading the business","definition":"This is any debt, liability, or contractual commitment a business owes to another party. Understanding all obligations is critical for assessing the business's true financial health.","what_it_means":"When buying a business, you need a complete picture of all its financial obligations, including existing loans, leases, and accounts payable. These liabilities will impact the business's future cash flow and your debt service capacity. Ensure all obligations are properly disclosed and accounted for in the deal structure.","url":"https://dealroom.so/glossary/financial-obligation","official_sources":[],"related":[{"slug":"debt","term":"Debt","url":"https://dealroom.so/glossary/debt"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"accounts-receivable","term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"What happens to my personal guaranty obligation if I later sell the business?","url":"https://dealroom.so/sba-7a/questions/what-happens-to-my-personal-guaranty-obligation-if-i-later-sell-the-business"},{"question":"If I sell the business, does the new owner inherit the prepayment penalty obligation for the SBA loan?","url":"https://dealroom.so/sba-7a/questions/if-i-sell-the-business-does-the-new-owner-inherit-the-prepayment-penalty-obligation-for-th"},{"question":"What if my personal financial statement shows low liquid assets?","url":"https://dealroom.so/sba-loans/basics/what-if-my-personal-financial-statement-shows-low-liquid-assets"},{"question":"Are SBA 7(a) loans exclusively for businesses with financial difficulties?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-exclusively-for-businesses-with-financial-difficulties"},{"question":"What if my business is new and has no financial history?","url":"https://dealroom.so/sba-loans/basics/what-if-my-business-is-new-and-has-no-financial-history"},{"question":"Does misrepresenting financial information on the SBA application automatically kill approval?","url":"https://dealroom.so/sba-7a/questions/does-misrepresenting-financial-information-on-the-sba-application-automatically-kill-appro"}]},"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 — Financial obligation","url":"https://dealroom.so/glossary/financial-obligation","source_type":"DealRoom Data"}}