Glossary · Reading the business
Non-Recurring Revenue
In short
This is income a business earns from one-off events or sales not expected to repeat regularly. It's important to identify this so you don't overvalue the business based on unsustainable income.
What it means in a deal
When analyzing a target business's financials, you'll "normalize" earnings by identifying and often removing non-recurring revenue. This gives you a clearer picture of the business's true ongoing profitability and its ability to cover debt service. Don't pay for revenue that won't continue after you take over.
Related terms
Common questions about Non-Recurring Revenue
- Can the value of customer contracts or recurring revenue streams count as collateral for an SBA loan?
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- Are there any recurring annual fees or charges I will pay directly to the SBA for my 7(a) loan?
- Can an SBA 7(a) loan finance the intangible assets of a service business, such as client lists or recurring contracts?
- How does declining revenue during due diligence impact loan approval?
- Does my business need to show consistent revenue over several years?
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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