{"ok":true,"canonical_url":"https://dealroom.so/glossary/prepaid-rent","api_url":"https://dealroom.so/api/public/glossary/prepaid-rent","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":"prepaid-rent","term":"Prepaid Rent","group":"Reading the business","definition":"This is rent paid in advance for a future period. It's an asset on the balance sheet, representing a future expense already covered.","what_it_means":"In an acquisition, prepaid rent can be a working capital adjustment. Ensure the seller transfers any benefit of prepaid rent to you at closing, often handled as a credit against the purchase price. Verify the lease agreement for details.","url":"https://dealroom.so/glossary/prepaid-rent","official_sources":[],"related":[{"slug":"lease-payment","term":"Lease Payment","url":"https://dealroom.so/glossary/lease-payment"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"}],"related_questions":[{"question":"Can a prepaid rent amount for the acquired business count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-prepaid-rent-amount-for-the-acquired-business-count-towards-my-equity-injection"},{"question":"Are prepaid rent or insurance expenses paid before closing considered part of the equity injection?","url":"https://dealroom.so/sba-7a/questions/are-prepaid-rent-or-insurance-expenses-paid-before-closing-considered-part-of-the-equity-i"},{"question":"Can I use prepaid expenses, like insurance premiums, as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-prepaid-expenses-like-insurance-premiums-as-part-of-my-equity-injection"},{"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 cover ongoing operational costs like rent or utilities?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-ongoing-operational-costs-like-rent-or-utilities"},{"question":"Can an SBA 7(a) loan be used for general business expenses like ongoing rent?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-for-general-business-expenses-like-ongoing-rent"}]},"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 — Prepaid Rent","url":"https://dealroom.so/glossary/prepaid-rent","source_type":"DealRoom Data"}}