Glossary · Reading the business
In short
This is the actual cash a business generates or uses over a period, after all expenses, taxes, and debt payments. It's the truest measure of a business's liquidity.
Lenders scrutinize net cash flow to determine if the business can cover its new SBA loan debt service and still have enough working capital. It's a critical component of repayment capacity, showing whether the business can truly afford the loan payments. Don't confuse it with SDE or EBITDA.
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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