Glossary · Reading the business
In short
This describes a situation where a business relies heavily on a single customer, supplier, or contract for a disproportionate amount of its revenue or operations. It's a major risk factor for any buyer.
Lenders will scrutinize Economic Dependence because it indicates significant risk if that relationship changes. During due diligence, identify if more than 20-30% of revenue comes from one client. You'll need a strong plan to diversify or mitigate this risk, as it can make a business difficult to finance or even ineligible.
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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