- 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


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