Glossary · Reading the business
receivables
In short
Money owed to the business by customers for goods or services already delivered. For a buyer, understanding receivables helps assess the business's immediate cash flow and the quality of its customer base.
What it means in a deal
During due diligence, you'll analyze the aging of receivables to spot potential collection issues or bad debt. High amounts of old receivables can indicate financial weakness or poor management, impacting the business's true value and your working capital needs post-acquisition.
Related terms
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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