{"ok":true,"canonical_url":"https://dealroom.so/glossary/trade-payables","api_url":"https://dealroom.so/api/public/glossary/trade-payables","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":"trade-payables","term":"Trade Payables","aka":"Accounts Payable","group":"Reading the business","definition":"These are amounts a business owes its suppliers for goods or services purchased on credit. As a buyer, you need to understand the payment terms and current balances to assess the business's short-term liabilities and working capital needs post-acquisition.","what_it_means":"In an asset purchase, you typically assume no seller liabilities, but you need to account for how the business will fund its payables cycle moving forward. Review the aging report during due diligence to spot any overdue balances that could indicate cash flow problems or strained supplier relationships.","url":"https://dealroom.so/glossary/trade-payables","official_sources":[],"related":[{"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"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"Can an SBA 7(a) working capital loan be used to pay off seller's outstanding trade payables?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-working-capital-loan-be-used-to-pay-off-seller-s-outstanding-trade-payables"},{"question":"Can I use the working capital portion of my SBA loan to pay off the acquired business's existing trade payables?","url":"https://dealroom.so/sba-7a/questions/can-i-use-the-working-capital-portion-of-my-sba-loan-to-pay-off-the-acquired-business-s-ex"},{"question":"Can a 7(a) loan finance the purchase of intangible assets like customer lists or trade secrets in a business acquisition?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-loan-finance-the-purchase-of-intangible-assets-like-customer-lists-or-trade-secr"}]},"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 — Trade Payables","url":"https://dealroom.so/glossary/trade-payables","source_type":"DealRoom Data"}}