{"ok":true,"canonical_url":"https://dealroom.so/glossary/recurring-revenue-streams","api_url":"https://dealroom.so/api/public/glossary/recurring-revenue-streams","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-streams","term":"Recurring revenue streams","group":"Reading the business","definition":"These are predictable, ongoing revenue sources for a business, often from subscriptions, contracts, or repeat customers. They indicate stability and make a business more valuable because future income is more certain.","what_it_means":"Lenders love recurring revenue because it reduces risk, showing the business has a solid base for future cash flow to cover debt service. When evaluating a target, dig into the contracts and customer retention rates. High recurring revenue often translates to a higher valuation and easier loan approval.","url":"https://dealroom.so/glossary/recurring-revenue-streams","official_sources":[],"related":[{"slug":"cash-flow-cycle","term":"Cash flow cycle","url":"https://dealroom.so/glossary/cash-flow-cycle"},{"slug":"financial-reporting","term":"Financial reporting","url":"https://dealroom.so/glossary/financial-reporting"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"}],"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 streams","url":"https://dealroom.so/glossary/recurring-revenue-streams","source_type":"DealRoom Data"}}