Glossary · Reading the business
In short
Inventory refers to the goods a business holds for sale or materials used in production. It's a current asset that impacts valuation, working capital, and often serves as collateral for loans.
When acquiring a business, you'll assess the value and salability of its inventory. It contributes to the overall asset purchase price and can serve as collateral for your SBA 7(a) loan. Ensure the inventory value is realistic and not obsolete, as this affects the business's true working capital and your ability to liquidate if needed.
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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