Glossary · Reading the business
In short
A current liability is an obligation due within one year, like accounts payable, short-term debt, or accrued expenses. These are important for buyers to assess a business's short-term financial health and working capital needs.
When reviewing a target business's balance sheet, current liabilities show you what needs to be paid off soon. Your lender will scrutinize these during underwriting. Ensure the seller covers all pre-closing current liabilities or that you account for them in your working capital projections.
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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