Glossary · Reading the business
In short
The actual cash generated by a business over past periods, typically seen in tax returns and financial statements. This is a key indicator of a business's ability to cover its debt service.
Lenders heavily scrutinize historical cash flow to determine if the business can support the new debt. They'll look at tax returns and Profit and Loss Statements for the last 3 years, making "add-backs" to calculate SDE or EBITDA. Your job is to understand these numbers and their implications for future repayment capacity.
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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