Glossary · Reading the business
Operating Account(Business checking account)
In short
An operating account is the primary bank account used for a business's daily income and expenses. Analyzing its statements reveals the true cash flow and financial activity.
What it means in a deal
During due diligence, review several years of operating account statements to verify revenues and expenses, identify unusual transactions, and confirm the business's actual cash flow. This provides a clear picture of the business's financial health, complementing the P&L and Balance Sheet.
Related terms
Common questions about Operating Account
- What documentation is needed to verify cash equity injection from a business's operating account prior to the 7(a) loan closing?
- Can funds from a personal investment account, like a brokerage account, count towards equity injection?
- Can funds from a personal investment account with fluctuating value, like a brokerage account, count towards equity?
- Can I use funds from a personal investment account, like a brokerage account, for my equity injection?
- Can funds from a personal investment account, like a brokerage account, count towards the SBA 7(a) loan equity injection?
- How does a lender verify equity injection funds from a personal investment account with fluctuating values, like a brokerage account?
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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