Glossary · Reading the business
Balance Sheet
In short
A snapshot of a business's assets, liabilities, and owner's equity at a specific point in time. Buyers care because it reveals the company's financial health, what it owns, what it owes, and its net worth.
What it means in a deal
Review the Balance Sheet alongside the P&L to get a complete financial picture. Pay close attention to current assets and liabilities to assess working capital, and scrutinize any large or unusual entries. This document helps confirm the value of assets you're acquiring and liabilities you might be assuming.
Related terms
Common questions about Balance Sheet
- What is the maximum total outstanding balance for all SBA 7(a) loans to one business?
- What is the prepayment penalty calculation for a 7(a) loan with a principal balance exceeding $500,000?
- Can a personal guaranty be released if the business performs exceptionally well and the loan balance is significantly reduced?
- Is there a prepayment penalty for early repayment of my SBA 7(a) loan if the principal balance is under $500,000?
- If I significantly reduce the principal balance of my SBA 7(a) loan within the first three years, will a prepayment penalty apply?
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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