Glossary · Reading the business
In short
An asset expected to be converted into cash, used up, or sold within one year, such as cash, accounts receivable, or inventory. Buyers examine current assets to understand a business's short-term liquidity and ongoing working capital needs.
In an asset purchase, you're directly acquiring specific current assets like inventory and accounts receivable. During due diligence, verify their quality and true value. Ensure that sufficient working capital is part of the deal to cover the business's immediate operational expenses post-closing without a cash crunch.
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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