{"ok":true,"canonical_url":"https://dealroom.so/glossary/net-cash-flow","api_url":"https://dealroom.so/api/public/glossary/net-cash-flow","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":"net-cash-flow","term":"Net cash flow","group":"Reading the business","definition":"This is the actual cash a business generates or uses over a period, after all expenses, taxes, and debt payments. It's the truest measure of a business's liquidity.","what_it_means":"Lenders scrutinize net cash flow to determine if the business can cover its new SBA loan debt service and still have enough working capital. It's a critical component of repayment capacity, showing whether the business can truly afford the loan payments. Don't confuse it with SDE or EBITDA.","url":"https://dealroom.so/glossary/net-cash-flow","official_sources":[],"related":[{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"debt-service","term":"Debt service","url":"https://dealroom.so/glossary/debt-service"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"}],"related_questions":[{"question":"Can future cash flow or profits from the acquired business count as equity injection?","url":"https://dealroom.so/for-lenders/questions/can-future-cash-flow-or-profits-from-the-acquired-business-count-as-equity-injection"},{"question":"How can an SBA 7(a) loan help with ongoing cash flow for my business?","url":"https://dealroom.so/sba-loans/basics/how-can-an-sba-7-a-loan-help-with-ongoing-cash-flow-for-my-business"},{"question":"What is the primary factor a lender considers when evaluating the cash flow from an acquired business?","url":"https://dealroom.so/sba-7a/questions/what-is-the-primary-factor-a-lender-considers-when-evaluating-the-cash-flow-from-an-acquir"},{"question":"Are there any restrictions on the use of cash flow projections for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/are-there-any-restrictions-on-the-use-of-cash-flow-projections-for-an-sba-7-a-acquisition-"},{"question":"Can I use an SBA 7(a) loan for my business's daily operating expenses or cash flow?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-my-business-s-daily-operating-expenses-or-cash-flow"},{"question":"How does a lender evaluate the reasonableness of a borrower's projections for future revenue and cash flow?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-evaluate-the-reasonableness-of-a-borrower-s-projections-for-future-reven"}]},"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 — Net cash flow","url":"https://dealroom.so/glossary/net-cash-flow","source_type":"DealRoom Data"}}