Glossary · Reading the business
In short
This metric shows how much revenue is left after subtracting the direct costs of making a product or providing a service. It indicates the core profitability of the business's operations.
A strong gross profit margin means the business efficiently produces its goods or services. When evaluating a target business, compare its margin to industry benchmarks. A declining margin might signal pricing issues or rising production costs, impacting your ability to repay the loan.
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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