Glossary · Reading the business
Sales projection
In short
This is your forecast of the business's future sales revenue, often based on historical performance and market analysis. Lenders rely on these to assess the business's ability to repay the loan.
What it means in a deal
For an acquisition, you'll develop detailed sales projections as part of your business plan and financial projections. These must be realistic and well-supported, as they directly impact the lender's assessment of repayment capacity and DSCR. Avoid overly optimistic forecasts; lenders look for conservatism.
Related terms
Common questions about Sales projection
- Are proceeds from personal investment sales eligible for equity injection?
- If the acquired business has a recent history of losses, but a strong projection under new ownership, can it still be approved?
- How does a lender evaluate the market value of collateral when there are limited comparable sales?
- Can I get an SBA 7(a) loan if my business is a startup with no sales yet?
- How does the SBA evaluate the eligibility of an applicant business involved in multi-level marketing or pyramid sales schemes?
- How does a lender ensure timely and accurate reporting of 7(a) loan sales on the secondary market to the SBA?
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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