{"ok":true,"canonical_url":"https://dealroom.so/glossary/inventory","api_url":"https://dealroom.so/api/public/glossary/inventory","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":"inventory","term":"Inventory","group":"Reading the business","definition":"Inventory refers to the goods a business holds for sale or materials used in production. It's a current asset that impacts valuation, working capital, and often serves as collateral for loans.","what_it_means":"When acquiring a business, you'll assess the value and salability of its inventory. It contributes to the overall asset purchase price and can serve as collateral for your SBA 7(a) loan. Ensure the inventory value is realistic and not obsolete, as this affects the business's true working capital and your ability to liquidate if needed.","url":"https://dealroom.so/glossary/inventory","official_sources":[],"related":[{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"}],"related_questions":[{"question":"Can an SBA 7(a) loan cover inventory purchases for my business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-inventory-purchases-for-my-business"},{"question":"Can an SBA 7(a) loan fund initial inventory for a new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-fund-initial-inventory-for-a-new-business"},{"question":"Can an SBA 7(a) loan cover inventory purchases for an existing business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-inventory-purchases-for-an-existing-business"},{"question":"Can I use an SBA 7(a) loan for inventory, payroll, or rent?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-inventory-payroll-or-rent"},{"question":"Can an SBA 7(a) loan finance inventory immediately after a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-inventory-immediately-after-a-business-acquisition"},{"question":"Can an SBA 7(a) loan finance inventory immediately needed for an acquired business?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-inventory-immediately-needed-for-an-acquired-business"}]},"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 — Inventory","url":"https://dealroom.so/glossary/inventory","source_type":"DealRoom Data"}}