Glossary · People and paperwork
Bank Statements
In short
Records of all financial transactions in a bank account over a period, showing deposits, withdrawals, and balances. Buyers need to review the business's bank statements during due diligence to verify revenue, expenses, and cash flow.
What it means in a deal
For due diligence, request at least 2-3 years of the target business's bank statements to corroborate financial statements (P&L, Balance Sheet). Look for consistent cash flow, unusual transactions, or large owner withdrawals that might not be reflected in the P&L. For your equity injection, your personal bank statements will be required to prove seasoned funds.
Related terms
Common questions about Bank Statements
- Do I need to provide personal financial statements for an SBA 7(a) loan?
- What types of personal financial statements are required for an SBA 7(a) loan?
- What types of personal financial statements are typically required for an SBA 7(a) loan application?
- Can unverified or inconsistent financial statements from the seller cause my SBA loan to be denied?
- What kind of financial statements does the SBA 7(a) loan application require from my business?
- What specific due diligence does the lender perform on the target business's financial statements for an acquisition?
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.