Glossary · Reading the business
In short
An unsettled financial obligation owed by the business to another party. Unaccounted or hidden liabilities can significantly devalue a business and affect its cash flow, impacting your ability to repay an SBA loan.
During due diligence, thoroughly review financial statements, contracts, and legal records to identify all outstanding liabilities. These could include unpaid taxes, pending lawsuits, or unfulfilled contractual obligations. Ensure the purchase agreement clearly allocates responsibility for existing liabilities between you and the seller.
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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