Glossary · Reading the business
In short
This describes the movement of cash into and out of a business over a period, from initial expenditures to collecting revenue from sales.
Understanding the target business's cash flow cycle is critical for managing working capital post-acquisition. A long cash flow cycle means more cash is tied up in inventory or accounts receivable, requiring more working capital to bridge the gap. Analyze the cycle to project your needs and avoid liquidity issues.
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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