Glossary · Reading the business
Operating Cash Flow
In short
The cash generated by a business's normal operations before accounting for financing or investment activities. It shows how much cash the business truly produces.
What it means in a deal
When you're evaluating a business, focus on its Operating Cash Flow, not just net profit. This figure reflects the actual cash available to pay expenses, invest in the business, and most importantly, cover your new loan's Debt Service Requirements. It's a primary component of Adjusted Net Operating Income.
Related terms
Common questions about Operating Cash Flow
- Can I use an SBA 7(a) loan for my business's daily operating expenses or cash flow?
- Can future cash flow or profits from the acquired business count as equity injection?
- How can an SBA 7(a) loan help with ongoing cash flow for my business?
- What is the primary factor a lender considers when evaluating the cash flow from an acquired business?
- Are there any restrictions on the use of cash flow projections for an SBA 7(a) acquisition loan?
- How does a lender evaluate the reasonableness of a borrower's projections for future revenue and cash flow?
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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