Glossary · Reading the business
Historical write-off
In short
This refers to past debts or assets that a business has deemed uncollectible or without value and removed from its balance sheet. It indicates past losses the business absorbed.
What it means in a deal
Analyze the seller's historical write-offs, especially for accounts receivable, during your due diligence. A pattern of high write-offs could signal poor credit policies, weak collections, or problems with product/service quality that impact revenue and profitability.
Related terms
Common questions about Historical write-off
- Do I need to write a formal business plan to apply for an SBA 7(a) loan?
- How does the SBA evaluate the financial strength of a business with inconsistent historical profitability for an acquisition loan?
- Can I get an SBA 7(a) loan if the business I'm buying has poor historical cash flow?
- What if the business I'm acquiring has poor historical cash flow or declining revenues for the last two years?
- How does a lender apply 'prudent lending standards' when evaluating a borrower's historical financial performance trends for a 7(a) loan?
- How does a lender assess the impact of a significant decline in the seller's historical revenue or profitability on a 7(a) acquisition?
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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