Glossary · Reading the business
Cohort charge-off rate
In short
Failure measured over a fixed group of loans from the same years, so brands and lenders are compared apples-to-apples.
What it means in a deal
A charge-off is a loan the lender wrote off as a loss. To compare fairly, DealRoom fixes the cohort to the FY2020–23 loans and measures what share later charged off — newer loans haven't had time to fail, so including them would understate risk. It's the same seasoned-book logic banks use. When you see a failure rate on a franchise or lender page, it's this cohort number, with a minimum loan count so small samples don't masquerade as signal.
Related terms
Common questions about Cohort charge-off rate
- Does the SBA tell lenders exactly what interest rate they must charge?
- What is the specific maximum interest rate a lender can charge on a variable rate 7(a) loan?
- What if my personal credit report shows a recent charge-off from a past medical bill?
- Is there a maximum interest rate a lender can charge for an SBA 7(a) loan?
- What is the maximum interest rate a lender can charge on an SBA 7(a) loan?
- Under what conditions can a lender charge off a 7(a) loan without prior SBA approval during the liquidation process?
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 2026-06-16 · 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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