Before an offer, a lending partner may review four things from a Lewisburg, TN business: its revenue history and time in business, the debts it already pays, what the money is for, and the documents that back all three. Gathering them early shortens the back-and-forth once a request is under review.
A funding partner may review revenue history, time in business, existing debt and the purpose of the money. Bank statements, tax returns, a debt schedule and quotes document each one. Acquisition requests add the seller's records.
The revenue record, month by month and year by year
Revenue history shows whether the business can carry a new payment. A partner may ask for recent business bank statements and the latest tax return, and compare deposits month by month: steady, rising, falling, or uneven from one month to the next. Time in business is counted from formation or from the first sales, and it tells a partner how many ups and downs the business has already been through.
Two habits help before any request: keep business money in a business account, and deposit sales in full rather than paying bills out of the register. Statements then show the real revenue.
A debt schedule and current obligations
A debt schedule lists every obligation the business already pays: lender, original amount, current balance, monthly payment and payoff date. Leases and credit cards belong on it too.
| Obligation | Balance | Monthly payment | Payoff |
|---|---|---|---|
| Equipment loan | $41,200 | $1,180 | March 2029 |
| Work vehicle loan | $23,600 | $690 | August 2028 |
| Credit line (drawn) | $12,000 | $240 | revolving |
| Business credit card | $4,300 | $130 | revolving |
| Total | $81,100 | $2,240 |
The business in this example pays $2,240 a month, or $26,880 a year, on existing debt. With $40,320 of yearly operating income before debt payments, its debt service coverage in this example is 1.50: income covers the payments 1.5 times.
A partner may look at how a new payment would change that figure. A current schedule answers the question before it is asked.
Purpose, quotes and a use-of-funds list
"Working capital" alone says little. A use-of-funds list says what each dollar buys, backed by a dealer quote, an invoice or a supplier order where one exists.
| Use | Amount | Backed by |
|---|---|---|
| Delivery van for the store's own orders | $52,000 | dealer quote |
| Forklift | $31,000 | dealer quote |
| Pallet racking | $9,500 | dealer quote |
| First stock order for a new product line | $22,500 | supplier order |
| Total request | $115,000 |
The request in this example totals $115,000, and each line points to the product that fits it: the van, forklift and racking to equipment financing, the stock to a credit line or inventory financing.
The request form only starts the conversation. Quotes and the list are discussed on the call, and a partner asks for copies during its review.
Buying a Lewisburg, TN plumbing or HVAC business: the seller's records an acquisition loan request adds
Buying an existing plumbing or HVAC business adds a second set of records to the buyer's own. A partner reviewing a purchase may ask for:
- the seller's returns and income statements, year by year
- the signed letter of intent, showing how much of the price is vans and tools, how much is parts on the shelves and how much is goodwill
- a list of service vans, tools and parts on hand, with VIN or serial numbers
- maintenance agreements and service contracts that transfer to the buyer
- a short account of the buyer's years in the plumbing or HVAC trade, and where the down payment comes from
Who will hold the trade license after closing is part of the plan from the first call. The building, if the seller owns one, is outside this site. A business term loan covers the business side.
In 2023, County Business Patterns counted 14 plumbing, heating and air-conditioning contractor employer establishments in Marshall County, TN, and 6 of them had fewer than five employees.
Documents required for a business loan in Lewisburg, TN: what building supply stores gather
A building supply store carries stock, sells on account to contractors and runs a yard, so its file leans on records that show all three:
- business bank statements for recent months
- the latest business tax return, plus a balance sheet dated this year
- a list of open contractor charge accounts, aged by days outstanding
- an inventory report by category, at cost
- the debt schedule and any equipment leases
- formation documents and the owner's photo ID
A business line of credit sized to receivables and stock is one fit for a store like this; the business loans page compares the others.
Building supply yards and garden centers share one Census code, building material and garden equipment and supplies dealers (NAICS 444), and Marshall County, TN had 20 of them as employers in 2023, per County Business Patterns. Counted by address, 14 such dealers had a ZIP 37091 address that year.
By Sabledale Business Loans · Updated
