Glossary · Reading the business
Deferred
In short
Postponed or put off until a later time. In financing, it often refers to payments or expenses that are not due immediately, impacting a business's short-term cash flow.
What it means in a deal
You might encounter deferred revenue, where customers paid in advance for services not yet delivered, or deferred expenses. Your seller note might also be structured with a "deferred principal payment" period, where you only pay interest initially. Understand how deferred items impact the business's true financial picture and your repayment capacity.
Related terms
Common questions about Deferred
- What if the business I'm buying has existing deferred revenue or unearned income?
- Can a partial equity injection come from a deferred management bonus from my current employer?
- How does a lender underwrite a business acquisition with existing deferred revenue or unearned income?
- How does a lender assess deferred maintenance or capital expenditure needs of an acquired business?
- Can a seller note with deferred payments but no interest count as full standby for equity injection?
- What specific conditions allow a seller note with deferred principal payments but immediate interest to qualify as full standby?
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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