Glossary · Reading the business
In short
Payments made by the business for goods or services it will receive in the future, like insurance premiums or rent paid in advance. These are assets on the balance sheet.
You'll see prepaid expenses on the Balance Sheet. During due diligence, verify these assets are legitimate and transferable to you post-acquisition. For instance, ensure any prepaid rent will benefit your lease agreement.
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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