Glossary · Reading the business
In short
The ease with which an asset can be converted into cash without affecting its market price. For a business, it refers to its ability to meet short-term obligations.
Lenders assess both the business's liquidity and your personal liquidity. The business needs enough cash and current assets to cover operating expenses, especially during a transition. Your personal liquidity demonstrates your ability to cover unexpected costs or personal expenses if the business underperforms initially. Be ready to provide bank and brokerage statements.
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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