Glossary · Doing the deal
In short
Debt compromise is an agreement where a lender accepts a lower amount than what is originally owed to settle a debt. If the business you're buying has outstanding debts, a compromise might reduce your inherited liabilities.
When acquiring a business with significant outstanding debt, especially if it's underperforming, you might negotiate a debt compromise with existing creditors. This can significantly reduce the liabilities you take on, improving the deal's financial viability. However, it requires careful negotiation and a clear plan for the business's future.
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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