Glossary · Reading the business
In short
The ability of a business to keep its existing customers over time. High retention rates indicate a stable customer base, which is a strong sign of business health and future cash flow.
When evaluating a business, analyze its customer retention rate. High retention means predictable revenue, crucial for debt service. Look at customer concentration – if a few customers make up most of the revenue, losing one is a major risk. Due diligence should include reviewing customer lists and historical sales data.
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.
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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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