Glossary · Reading the business
In short
These are forecasts of the cash a business needs to cover its day-to-day operations after an acquisition, beyond the purchase price. Accurate projections ensure the business has enough liquidity to operate smoothly post-closing.
SBA lenders require detailed working capital projections to ensure the acquired business can sustain itself without immediate cash shortfalls. You'll need to show how much cash is required for inventory, payroll, and other operating expenses, and how that will be funded. Underestimate at your peril; the lender will scrutinize this.
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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