{"ok":true,"canonical_url":"https://dealroom.so/glossary/financials","api_url":"https://dealroom.so/api/public/glossary/financials","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":"financials","term":"Financials","group":"Reading the business","definition":"These are the core documents showing a business's financial health, like the P&L and Balance Sheet. You need them to understand performance and value the business.","what_it_means":"Lenders will scrutinize several years of historical Financials to assess the business's cash flow and repayment capacity. During due diligence, reconcile these with tax returns and bank statements to ensure accuracy.","url":"https://dealroom.so/glossary/financials","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"tax-return","term":"Tax return","url":"https://dealroom.so/glossary/tax-return"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"Besides financials, what other key documents are needed for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/besides-financials-what-other-key-documents-are-needed-for-an-sba-7-a-loan"},{"question":"What if my personal liquidity is low, but the business's financials are very strong?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-liquidity-is-low-but-the-business-s-financials-are-very-strong"},{"question":"How important is my personal credit score if the business I'm buying has strong financials?","url":"https://dealroom.so/sba-7a/questions/how-important-is-my-personal-credit-score-if-the-business-i-m-buying-has-strong-financials"},{"question":"What specific diligence must a lender perform on seller's financials for a 7(a) acquisition loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-diligence-must-a-lender-perform-on-seller-s-financials-for-a-7-a-acquisition"},{"question":"What if the seller's representations about the business's financials turn out to be significantly inaccurate during diligence?","url":"https://dealroom.so/sba-7a/questions/what-if-the-seller-s-representations-about-the-business-s-financials-turn-out-to-be-signif"}]},"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 — Financials","url":"https://dealroom.so/glossary/financials","source_type":"DealRoom Data"}}