Glossary · Reading the business
Personal cash flow
In short
This refers to the money you have coming in and going out personally each month. Lenders assess it to ensure you can cover personal expenses and still contribute to the business if needed.
What it means in a deal
Lenders evaluate your global cash flow, which includes both the business's projected cash flow and your personal cash flow. They want assurance that you won't be financially stressed outside the business, which could jeopardize loan repayment. Your tax returns provide key insights into this.
Related terms
Common questions about Personal 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?
- When underwriting a 7(a) loan, how does a lender ensure that personal resources of the principals are properly considered in the global cash flow analysis?
- 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?
- Can I use an SBA 7(a) loan for my business's daily operating expenses or 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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