Glossary · Reading the business
In short
A financial report showing how much cash a business generates and uses over a period, broken down by operating, investing, and financing activities. Buyers care because it shows the true liquidity of the business, beyond just profit.
The cash flow statement is crucial because a profitable business can still have cash problems. It reveals how cash moves in and out, helping you identify if the business generates enough cash from operations to fund itself, pay debts, and provide owner compensation. Always review this alongside the P&L and Balance Sheet.
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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