{"ok":true,"canonical_url":"https://dealroom.so/glossary/historical-write-off","api_url":"https://dealroom.so/api/public/glossary/historical-write-off","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":"historical-write-off","term":"Historical write-off","group":"Reading the business","definition":"This refers to past debts or assets that a business has deemed uncollectible or without value and removed from its balance sheet. It indicates past losses the business absorbed.","what_it_means":"Analyze the seller's historical write-offs, especially for accounts receivable, during your due diligence. A pattern of high write-offs could signal poor credit policies, weak collections, or problems with product/service quality that impact revenue and profitability.","url":"https://dealroom.so/glossary/historical-write-off","official_sources":[],"related":[{"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"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"}],"related_questions":[{"question":"Do I need to write a formal business plan to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-write-a-formal-business-plan-to-apply-for-an-sba-7-a-loan"},{"question":"How does the SBA evaluate the financial strength of a business with inconsistent historical profitability for an acquisition loan?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-evaluate-the-financial-strength-of-a-business-with-inconsistent-historica"},{"question":"Can I get an SBA 7(a) loan if the business I'm buying has poor historical cash flow?","url":"https://dealroom.so/sba-7a/questions/can-i-get-an-sba-7-a-loan-if-the-business-i-m-buying-has-poor-historical-cash-flow"},{"question":"What if the business I'm acquiring has poor historical cash flow or declining revenues for the last two years?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-poor-historical-cash-flow-or-declining-revenues-for"},{"question":"How does a lender apply 'prudent lending standards' when evaluating a borrower's historical financial performance trends for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-apply-prudent-lending-standards-when-evaluating-a-borrower-s-historical-"},{"question":"How does a lender assess the impact of a significant decline in the seller's historical revenue or profitability on a 7(a) acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-the-impact-of-a-significant-decline-in-the-seller-s-historical-re"}]},"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 — Historical write-off","url":"https://dealroom.so/glossary/historical-write-off","source_type":"DealRoom Data"}}