{"ok":true,"canonical_url":"https://dealroom.so/glossary/recurring-revenue","api_url":"https://dealroom.so/api/public/glossary/recurring-revenue","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":"recurring-revenue","term":"Recurring Revenue","group":"Reading the business","definition":"Income that is predictable and likely to continue in the future, often from subscriptions, contracts, or repeat purchases. This is a strong indicator of business stability.","what_it_means":"Businesses with high recurring revenue are more attractive to lenders and buyers because it signals stable cash flow and reduces risk. During due diligence, verify the contracts, customer churn rates, and renewal history. This predictability underpins your ability to service debt and generate profit.","url":"https://dealroom.so/glossary/recurring-revenue","official_sources":[],"related":[{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"quality-of-earnings","term":"Quality of Earnings","url":"https://dealroom.so/glossary/quality-of-earnings"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"}],"related_questions":[{"question":"Can the value of customer contracts or recurring revenue streams count as collateral for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/can-the-value-of-customer-contracts-or-recurring-revenue-streams-count-as-collateral-for-a"},{"question":"Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?","url":"https://dealroom.so/sba-7a/questions/are-there-annual-servicing-fees-or-other-recurring-charges-beyond-the-sba-servicing-fee"},{"question":"Are there any recurring annual fees or charges I will pay directly to the SBA for my 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/are-there-any-recurring-annual-fees-or-charges-i-will-pay-directly-to-the-sba-for-my-7-a-l"},{"question":"Can an SBA 7(a) loan finance the intangible assets of a service business, such as client lists or recurring contracts?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-intangible-assets-of-a-service-business-such-as-client-lis"},{"question":"How does declining revenue during due diligence impact loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-declining-revenue-during-due-diligence-impact-loan-approval"},{"question":"Does my business need to show consistent revenue over several years?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-show-consistent-revenue-over-several-years"}]},"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 — Recurring Revenue","url":"https://dealroom.so/glossary/recurring-revenue","source_type":"DealRoom Data"}}