11/09/2026
Are you still budgeting for the purchase but not the first payroll after closing?
The short answer: assess the cash the business will need after you take over, not just what you need to close.
Payroll, rent, and supplier bills have due dates.
Customer payments may arrive on a different schedule.
Understanding that timing is part of assessing how the business can keep operating and support its jobs through the handoff.
SBA guidance for buyers of existing businesses points to reviewing cash flow and preparing monthly projections.
Here’s a practical way to investigate the timing, not a one-size-fits-all cash-reserve rule:
1. What comes due soon?
List payroll, rent, and supplier bills with their due dates.
2. When do customers actually pay?
Compare those dates with cash receipts, not just recorded sales.
3. What cash remains available if receipts come in later than expected?
Look at what’s on hand after closing and what must be paid next.
A shop paid at the register has a different cash rhythm from a business that invoices customers and waits for payment.
First step: sketch one month of expected cash in and cash out using records the seller can substantiate.
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