{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-if-the-business-being-acquired-has-significant-outstanding-accounts-receivable-ar","api_url":"https://dealroom.so/api/public/questions/what-if-the-business-being-acquired-has-significant-outstanding-accounts-receivable-ar","question":"What if the business being acquired has significant outstanding Accounts Receivable (AR)?","topic":"Collateral & due diligence","audience":"borrower","bot_mode":"buyer","short_answer":"Outstanding Accounts Receivable (AR) are typically considered business collateral, but their quality and collectability will be thoroughly assessed by the lender.","rule":"SBA lenders take a lien on all business assets, including AR. However, they will discount the value of AR based on its age and collectability. Aged or uncollectible AR will have little to no collateral value.","example":"If the business you're buying has $150,000 in Accounts Receivable, but $50,000 of that is over 90 days past due, the lender might only give collateral credit for the remaining $100,000 or even less, depending on their assessment of the debtor's payment history.","what_lenders_check":"Lenders perform an AR aging analysis and may conduct verifications to determine the true value and collectability of the receivables. They want to ensure the collateral value is realistic and not overstated.","required_facts":["Accounts Receivable","Collateral value","Collectability","AR aging","Lien position"],"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":"When is an independent appraisal required for non-real estate business assets being acquired?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-appraisal-required-for-non-real-estate-business-assets-being-acquir"}],"related_terms":[{"term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"},{"term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"term":"Lien on Accounts Receivable","url":"https://dealroom.so/glossary/lien-on-accounts-receivable"},{"term":"Operational due diligence","url":"https://dealroom.so/glossary/operational-due-diligence"},{"term":"Legal due diligence","url":"https://dealroom.so/glossary/legal-due-diligence"},{"term":"Inadequate due diligence","url":"https://dealroom.so/glossary/inadequate-due-diligence"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-being-acquired-has-significant-outstanding-accounts-receivable-ar","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."]}