Glossary · Reading the business
In short
This is the estimated value of an asset at the end of its useful life or a specific period. It's often used in equipment leasing or depreciation calculations.
While less directly critical for the initial loan underwriting, understanding the residual value of significant equipment can help you assess the true cost of ownership and future capital expenditure needs. An appraiser might factor this in when valuing fixed assets that serve as collateral.
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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