Glossary · Reading the business
Projected expense
In short
An estimate of future costs a business expects to incur, used in financial projections to forecast profitability and cash flow. Accuracy is vital for your business plan.
What it means in a deal
Your business plan will include detailed financial projections with projected expenses. Lenders will scrutinize these to ensure they are realistic and cover all operational costs, including your new debt service. Underestimate at your peril; it impacts the lender's assessment of your repayment capacity.
Related terms
Common questions about Projected expense
- How does business overhead expense insurance differ from key-person life insurance?
- What if the acquired business has a history of losses but strong projected growth under new ownership?
- What happens if the business's projected cash flow barely covers the new SBA 7(a) loan payments?
- Could a significant drop in the buyer's post-acquisition projected cash flow kill SBA 7(a) loan approval?
- What kind of everyday expenses can working capital cover?
- Which pre-closing business expenses can count towards 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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