Glossary · Reading the business
In short
Income that is predictable and likely to continue in the future, often from subscriptions, contracts, or repeat purchases. This is a strong indicator of business stability.
Businesses with high recurring revenue are more attractive to lenders and buyers because it signals stable cash flow and reduces risk. During due diligence, verify the contracts, customer churn rates, and renewal history. This predictability underpins your ability to service debt and generate profit.
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.
Free · No documents · Usually same-day