Glossary · Reading the business
In short
This refers to past debts or assets that a business has deemed uncollectible or without value and removed from its balance sheet. It indicates past losses the business absorbed.
Analyze the seller's historical write-offs, especially for accounts receivable, during your due diligence. A pattern of high write-offs could signal poor credit policies, weak collections, or problems with product/service quality that impact revenue and profitability.
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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