Glossary · Reading the business
In short
This refers to how easily an asset can be converted into cash without significant loss in value. Highly liquid assets, like cash or marketable securities, are easy to sell quickly.
Lenders assess the liquidity of your personal assets to determine your ability to meet your equity injection and your capacity to handle unexpected business challenges. For the business itself, highly liquid assets like accounts receivable can serve as good collateral, but illiquid assets like specialized equipment are harder to value.
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.
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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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