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Glossary · Reading the business

Bond(Debt security)

In short

A debt instrument where an investor loans money to an entity (corporate or government) for a defined period at a fixed interest rate. In small business acquisitions, bonds are rarely a primary asset or liability you'd encounter.

What it means in a deal

If the target business holds bonds as an investment, they would be listed on the balance sheet as assets. You'd evaluate their market value and liquidity during due diligence. It's uncommon for a small business to issue its own bonds.

Common questions about Bond

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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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