Glossary · Reading the business
In short
Solvency means a business has enough assets to cover its debts and can meet its long-term financial obligations. It's a key indicator of financial health.
When you're evaluating a target business, you need to confirm its long-term Solvency. Look at the Balance Sheet to see if assets exceed liabilities. A business that isn't solvent may have trouble meeting future Debt Service Requirements, even if it currently has strong Operating 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.
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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