Glossary · Reading the business
In short
Assets expected to be converted to cash, used up, or sold within one year, like inventory or accounts receivable. These are vital for a business's daily operations and liquidity.
When acquiring a business, you'll analyze these assets on the Balance Sheet to understand working capital. An SBA 7(a) loan can include funds for Working Capital, but it's crucial to confirm the quality and collectability of existing short-term assets like Accounts Receivable during due diligence.
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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