- CAR WASH LOAN CHECKLIST - Purchase of an
Existing Car Wash
Financial
Statements
(Balance Sheet, Income Statement, and
Sources and Uses of Cash): Need
for
the most recent three fiscal years and for the most recent interim
period.
Need at least the net operating
income statements for the car wash to be purchased. If you are already
in the car
wash business need balance sheets and income statements for that
business.
We need just the most recent fiscal
year-end
and interim balance sheets and income statements for any business
unrelated
to the car wash where you own 20% or more, and for any trust of which
you
are a beneficiary. Interim balance sheets and income statements need to
be
dated within 60 days prior to presenting the loan to the lender. If a
partnership
or corporation, and fiscal year-end balance sheets and income
statements
are not available, tax returns can usually substitute.
Federal Income Tax
Returns
(including all schedules): Last three years. Business and personal.
Need for the business entity that
now
owns the car wash to be purchased, even if there are other car washes
or
other businesses included in that return. If the car wash is owned
personally by the seller we need just the Schedule C's.
Need for your existing car wash
business, if you own one, and for you personally. We need just the most
recent return for any unrelated business where you own 20% or more and
for any trust of
which you are a beneficiary. Need extension filings.
If this will be a SBA loan, SBA
requires that the lender also obtain a copy of the return transcripts
directly from IRS. You and the seller will each be asked to sign an IRS
Form 4506 to request
these. If this will be a SBA loan, SBA requires the lender to obtain a
copy
of the returns directly from IRS. Many non-SBA lenders also have this
requirement.
Owner/Guarantor
Personal
Financial Statement and Personal Cash Flow Statement:
For all owners with 20% or more
ownership. We have some helpful forms and software for these.
Personal Resume and
References, and
Personal History Statement:
A simple resume is sufficient. A
resume is not absolutely necessary if you are already in the car wash
business, but
if you already have a resume please provide a copy. We have a resume
form.
Need the separate Personal History Statement form completed for each
20%
or more owner and spouse.
Copies of all
Notes, Leases
Payable
& Receivable, Partnership Agreements, and all other formal
agreements:
Usually just for your car wash
business(es). This is both a lender and a SBA requirement.
Verification that
quarterly
payroll
taxes, income taxes, and property taxes are current:
Not required initially - is a part
of
the closing process. Verification can include completed returns,
statements, and canceled checks. A letter from your CPA can substitute
for these. Payroll taxes must be current or near-current at closing.
Business Cash Flow Projections
(need two years forward by month only if
less than one year of tax returns available):
May not be necessary with sufficient
historical
financial information. We have projections forms specifically for car
washes.
We also provide car wash cash flow forecasting software to our
applicants.
We are available to answer any questions that you may have about
preparing
the projections, or with your input can prepare the projections
for
you.
Business/Marketing
Plan:
This does not need to be overly
complex or lengthy. We can provide you with business plan outlines. The
main issues are your marketing and operating plans. A full business
plan is not required if you are already a car wash owner, but in that
instance a three or four page summary of your operating and marketing
plan for the new location would
be helpful.
Need itemized loan request. If a
conveyor car wash, need an area demographic report. We have a specific
source for this
and will provide you with information to obtain the report.
Information about
any planned
refurbishment:
Need a copy of the construction or
remodeling
estimate(s) provided to you by the contractor(s). The loan can be
approved
based upon a broadly itemized estimate. The final contract (s) must be
signed
prior to loan closing.
Information about
the
equipment:
Need a copy of the quotes for new
equipment
and installation of the equipment. The final equipment contract must be
signed
prior to loan closing. Written or verbal rebate agreements must be
disclosed.
Other information:
Prior to seeking formal approval
from the
lender we need a signed copy of the purchase contract.
Need a copy of the most recent
property tax statement. Please provide copies of available past plat
drawings, surveys, appraisals, and environmental reports. You will want
to ask for a copy of
the construction plans "as completed".
If the loan is for the purchase of a
conveyor
or in-bay automatic car wash please provide copies of the car count
reports
for the last three fiscal years, the most recent year-to-date period,
and
the same interim period last year.
If a car wash appraisal,
environmental survey, or property survey is needed, these are done after
the loan is approved by the lender and by SBA, if a SBA-guaranteed loan.
Alan Bussey
Car Wash Loans 817-903-876-2308
fax: 484-737-1092