Glossary · Reading the business
In short
This is an arrangement where a seller (consignor) provides goods to a retailer (consignee) to sell, but the consignor retains ownership until the goods are sold.
When reviewing a business, understand if any inventory is held on consignment or if the business itself sells goods on consignment. This affects your working capital and inventory valuation. Consigned inventory doesn't belong to the business, so it shouldn't be counted as an asset for collateral or valuation purposes.
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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