Glossary · People and paperwork
Co-mingled
In short
Describes when personal and business funds or assets are mixed together, making it impossible to distinguish them. This is a major red flag for buyers and lenders as it obscures the true financial health of the business.
What it means in a deal
Sellers who co-mingle funds complicate your due diligence and financial analysis, making it difficult to accurately calculate SDE or EBITDA since personal expenses might be hidden as business expenses. Insist on clear separation of all business and personal accounts and meticulously scrutinize bank statements for any irregular or unclear transactions.
Related terms
Common questions about Co-mingled
- Is the SBA like a co-signer for my business loan?
- What happens if a major co-owner or guarantor has a recent bankruptcy on their personal credit?
- What impact does a co-signer on my personal guaranty have on the SBA 7(a) loan approval?
- Can an SBA 7(a) loan be used to purchase a business that is structured as a co-op?
- Can an SBA 7(a) loan finance the entire $500,000 purchase price for buying out a co-owner?
- What if my spouse is a co-signer on a personal asset offered as collateral but not an owner?
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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