Glossary · Reading the business
In short
Money owed to the business by customers for goods or services already delivered. For a buyer, understanding receivables helps assess the business's immediate cash flow and the quality of its customer base.
During due diligence, you'll analyze the aging of receivables to spot potential collection issues or bad debt. High amounts of old receivables can indicate financial weakness or poor management, impacting the business's true value and your working capital needs post-acquisition.
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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