Glossary · Reading the business
In short
A fixed cost is an expense that does not change with the level of goods or services produced, such as rent, insurance premiums, or administrative salaries.
Understanding a business's fixed costs is crucial for financial forecasting. These costs remain constant even if sales dip, impacting profitability and cash flow during slower periods. Analyze the proportion of fixed versus variable costs to assess the business's operational leverage and risk.
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.
Free · No documents · Usually same-day