Glossary · Reading the business
In short
A bill issued to a customer for goods or services provided, representing money owed to the business (accounts receivable).
In an acquisition, you'll need to analyze the aging of customer invoices to understand the business's cash flow quality and potential bad debt. Lenders will take a lien on these as a primary source of collateral, especially for service businesses, but they'll discount their value.
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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