Glossary · Reading the business
In short
This is rent paid in advance for a future period. It's an asset on the balance sheet, representing a future expense already covered.
In an acquisition, prepaid rent can be a working capital adjustment. Ensure the seller transfers any benefit of prepaid rent to you at closing, often handled as a credit against the purchase price. Verify the lease agreement for details.
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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