Glossary · Reading the business
In short
This is a positive aspect of a loan application that helps offset a perceived weakness, making the deal more attractive to a lender. It strengthens your overall creditworthiness for approval.
If a business has a weak area, like slightly lower-than-desired DSCR, a strong compensating factor can make the difference. Examples include significant personal liquidity, deep industry experience, a strong balance sheet for the target business, or a large equity injection. Identify your strengths and highlight them in your business plan to address any weaknesses.
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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