Glossary · People and paperwork
In short
The period for which a contract or lease agreement can be extended beyond its initial duration. Understanding renewal terms is vital for assessing the longevity of revenue streams and operational costs.
When reviewing critical contracts, especially customer agreements or your facility lease, check for renewal terms. Are they automatic? What are the conditions for renewal? A short or uncertain renewal term on a major customer contract or lease can pose a significant risk to the business's future stability and your cash flow.
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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