Glossary · Reading the business
In short
How much capital (cash, assets) a business has relative to its risks and operations. A strong capital position means less risk for you and your lender.
Lenders evaluate a business's capital adequacy to ensure it can cover its liabilities and operate without immediate financial distress. As a buyer, review the balance sheet to understand current capital, and factor in your post-acquisition working capital needs.
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.
Free · No documents · Usually same-day