Glossary · Doing the deal
Pre-Closing
In short
This is the crucial period after your loan is approved but before funds are disbursed, where all final documents are prepared and reviewed. It's when you ensure everything is ready for a smooth transfer of ownership and funds.
What it means in a deal
During Pre-Closing, you'll work with your lender and legal counsel to finalize all loan documents, purchase agreements, and ensure all conditions precedent are met. Expect to sign numerous forms, verify insurance, and confirm all closing costs. Your job is to meticulously review everything.
Related terms
Common questions about Pre-Closing
- Which pre-closing business expenses can count towards equity?
- Are pre-closing legal and accounting fees eligible to be counted towards my equity injection?
- If I contribute inventory purchased pre-closing for the acquired business, can it count as equity?
- Can pre-closing legal and accounting fees associated with the acquisition be counted towards my equity injection?
- Can I use pre-closing expenses, like a business broker's fee, as part of my equity injection?
- What documentation is required if a business owner contributes pre-existing business equipment as equity?
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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