Glossary · Reading the business
In short
These are amounts a business owes its suppliers for goods or services purchased on credit. As a buyer, you need to understand the payment terms and current balances to assess the business's short-term liabilities and working capital needs post-acquisition.
In an asset purchase, you typically assume no seller liabilities, but you need to account for how the business will fund its payables cycle moving forward. Review the aging report during due diligence to spot any overdue balances that could indicate cash flow problems or strained supplier relationships.
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.
Free · No documents · Usually same-day