Glossary · Reading the business
In short
This represents money the business owes to its suppliers or vendors for goods and services already received. It's a short-term liability that impacts the business's working capital.
When analyzing a target business, review its Accounts Payable aging report to understand payment habits and potential overdue bills. High or old AP could indicate cash flow issues. You'll inherit these liabilities, so factor them into your working capital needs post-acquisition.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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