{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/are-accounts-receivable-from-existing-customers-considered-acceptable-collateral-for-an-sb","api_url":"https://dealroom.so/api/public/questions/are-accounts-receivable-from-existing-customers-considered-acceptable-collateral-for-an-sb","question":"Are accounts receivable from existing customers considered acceptable collateral for an SBA 7(a) loan?","topic":"Collateral","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, accounts receivable (A/R) generated by the business are generally considered acceptable collateral for an SBA 7(a) loan.","rule":"Accounts receivable are current assets of the business that represent money owed by customers for goods or services already delivered. The SBA typically requires a first lien on all business assets, including A/R, to secure the loan. The value assigned to A/R as collateral will depend on its quality, age, and collection history.","example":"A service business is being acquired with $150,000 in outstanding accounts receivable. The SBA 7(a) lender will typically take a first lien on these receivables. The lender might discount the A/R value for collateral purposes, perhaps considering only 70-80% of current, collectible A/R.","what_lenders_check":"Lenders assess the quality and collectability of the accounts receivable. They look at customer concentration, payment history, and the age of the receivables. High concentrations or old receivables may be deemed less valuable as collateral. Ongoing monitoring of A/R performance may be required.","required_facts":[],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"What are the requirements for pledging inventory as collateral for an SBA 7(a) loan for a retail business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-for-pledging-inventory-as-collateral-for-an-sba-7-a-loan-for-a-r"},{"question":"If the business assets are not enough, will the SBA require me to pledge my primary residence as collateral for a $700,000 loan?","url":"https://dealroom.so/sba-7a/questions/if-the-business-assets-are-not-enough-will-the-sba-require-me-to-pledge-my-primary-residen"},{"question":"Does an SBA 7(a) loan typically require collateral beyond the business assets?","url":"https://dealroom.so/sba-7a/questions/does-an-sba-7-a-loan-typically-require-collateral-beyond-the-business-assets"},{"question":"How does an SBA 7(a) loan handle intangible assets like intellectual property as collateral?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-handle-intangible-assets-like-intellectual-property-as-collateral"},{"question":"What types of assets can be used as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-types-of-assets-can-be-used-as-collateral-for-an-sba-7-a-loan"},{"question":"What if my personal residence is already mortgaged; can it still be used as collateral?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-residence-is-already-mortgaged-can-it-still-be-used-as-collateral"}],"related_terms":[{"term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/are-accounts-receivable-from-existing-customers-considered-acceptable-collateral-for-an-sb","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}