Glossary · Reading the business
Training cost
In short
Expenses incurred to educate or develop employees' skills. Buyers care because these costs affect profitability but can also indicate investment in human capital and future growth.
What it means in a deal
Training costs, found on the P&L, are sometimes a discretionary expense that can be adjusted. If the seller has been underinvesting, you might face significant training needs post-acquisition, which will impact your early cash flow. Factor this into your projections and working capital needs.
Related terms
Common questions about Training cost
- Can an SBA 7(a) loan be used to hire new staff and cover their initial training costs?
- Can an SBA 7(a) loan include funds for employee training or transition costs after a business acquisition?
- Can I use an SBA 7(a) loan to finance employee training or transition costs after buying a business?
- Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?
- Are there any specific training or experience requirements for the business owner?
- Does the SBA 7(a) loan program allow for seller training period financing?
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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