Glossary · Reading the business
In short
A business whose revenues and expenses fluctuate significantly based on seasons or specific times of the year. This impacts cash flow and repayment capacity.
Lenders will analyze historical financial statements over several years to understand the seasonality and ensure the business generates sufficient cash flow throughout the year to service the debt. You'll need to demonstrate how you'll manage cash flow during slower periods and how the business will sustain debt payments.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
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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