Glossary · Reading the business
Overall Leverage
In short
This measures the total debt a business or buyer carries relative to its equity or assets. High leverage means more risk for lenders, impacting your loan terms and approval.
What it means in a deal
Lenders assess your personal and business leverage. For a business acquisition, they look at the debt-to-equity ratio of the acquired business and your personal debt load. Too much debt can signal repayment risk, affecting your global cash flow and the bank's willingness to lend. Understand how the new SBA debt impacts this ratio.
Related terms
Common questions about Overall Leverage
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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