Glossary · Reading the business
In short
The capital requirement refers to the amount of financial resources a business needs to operate, grow, and meet its obligations. It covers both fixed assets and working capital.
During due diligence, assess the business's ongoing capital requirements. Insufficient working capital or unexpected needs for new equipment can strain cash flow post-acquisition. Your equity injection and the loan proceeds must cover both the purchase price and adequate working capital.
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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