Glossary · People and paperwork
In short
A lease payment made in advance for future occupancy or use of an asset. For a buyer, this means the seller has already covered some of your future occupancy costs, which is a benefit.
In a 7(a) acquisition, a pre-paid lease often gets factored into working capital adjustments or as an asset on the balance sheet. Verify the period covered and ensure it's transferable to you as the new owner. It reduces your immediate cash outflow post-closing.
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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