Glossary · Reading the business
Aging of receivables
In short
This is a report that categorizes a business's accounts receivable by the length of time they have been outstanding. It's a key indicator of cash flow health and collection efficiency.
What it means in a deal
During due diligence, review the aging of receivables to identify potential bad debts or slow-paying customers. A high percentage of old receivables could signal problems with the business's collection process or customer quality, impacting your future working capital.
Related terms
Common questions about Aging of receivables
- Can I use a secured personal line of credit as part of my equity injection?
- Can a seller-financed portion of the sale be considered part of my equity injection?
- Can a buyer's assumption of existing business debt count as part of the equity injection?
- Can I use funds from a personal line of credit as part of my equity injection?
- Can funds from an unsecured personal line of credit be considered part of my equity injection?
- Do all owners of an acquiring business, regardless of ownership percentage, need to provide a personal guaranty?
Defined by CapBench 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.
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