Glossary · Reading the business
In short
This refers to any debt owed by the business to an entity other than the business's owners or related parties, such as bank loans, vendor credit, or equipment financing.
When buying a business, you need a clear picture of all existing third-party debt. This debt will either need to be paid off at closing or assumed by you. Understand the terms, interest rates, and collateral for all existing debt as it impacts the business's total liabilities and your new loan structure.
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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