Glossary · Reading the business
Future earnings
In short
Future earnings refer to the projected profits or cash flow a business is expected to generate after you acquire it. Lenders use these projections to assess the business's ability to repay the loan.
What it means in a deal
While lenders primarily rely on historical financials, they will also review your business plan and financial projections for future earnings, especially if you plan significant changes. However, don't expect future earnings projections alone to carry the weight of an unproven historical track record. Be realistic and well-supported in your projections.
Related terms
Common questions about Future earnings
- Can a business's retained earnings count as equity injection?
- Can I use my business's retained earnings from a prior venture as equity injection?
- Can future cash flow or profits from the acquired business count as equity injection?
- How does an SBA 7(a) loan affect my ability to get future business financing?
- Can I use an SBA 7(a) loan to buy land for future business expansion?
- Can a 7(a) loan finance the purchase of undeveloped land for future business expansion?
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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