Glossary · Reading the business
Year-end financial statements
In short
These are the financial reports—typically a Balance Sheet and Profit and Loss Statement—prepared at the close of a business's fiscal year. They are crucial for understanding a business's historical performance.
What it means in a deal
Lenders will require several years of year-end financial statements from the seller to underwrite your loan. These documents, along with tax returns, are fundamental for calculating SDE or EBITDA and assessing the business's repayment capacity. Scrutinize them during due diligence to confirm the business's financial health.
Related terms
Common questions about Year-end financial statements
- Do I need to provide personal financial statements for an SBA 7(a) loan?
- What types of personal financial statements are required for an SBA 7(a) loan?
- What types of personal financial statements are typically required for an SBA 7(a) loan application?
- Can unverified or inconsistent financial statements from the seller cause my SBA loan to be denied?
- What kind of financial statements does the SBA 7(a) loan application require from my business?
- What specific due diligence does the lender perform on the target business's financial statements for an acquisition?
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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