Glossary · Reading the business
Financial Forecast
In short
A projection of a business's future financial performance, including revenue, expenses, and profit. Buyers use this to understand potential growth and assess the viability of their investment.
What it means in a deal
Lenders often require a financial forecast, especially for acquisitions with significant changes or growth plans, to evaluate repayment capacity. As a buyer, you must scrutinize the assumptions behind it and compare it to historical performance and industry trends.
Related terms
Common questions about Financial Forecast
- What if my personal financial statement shows low liquid assets?
- Are SBA 7(a) loans exclusively for businesses with financial difficulties?
- What if my business is new and has no financial history?
- Does misrepresenting financial information on the SBA application automatically kill approval?
- How does my personal financial history affect SBA 7(a) loan approval?
- What specific financial documentation will I need to provide for my personal finances?
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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