Glossary · Reading the business
In short
This is any debt, liability, or contractual commitment a business owes to another party. Understanding all obligations is critical for assessing the business's true financial health.
When buying a business, you need a complete picture of all its financial obligations, including existing loans, leases, and accounts payable. These liabilities will impact the business's future cash flow and your debt service capacity. Ensure all obligations are properly disclosed and accounted for in the deal structure.
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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