Contractor business plans lenders can underwrite
Contractors, from remodelers to HVAC and plumbing companies, are some of the most frequent SBA borrowers. Lenders look past the revenue line to backlog, margin by job and how cash moves through receivables.
Written by a former underwriter who approved contractor loans for 10 years.
- SBA 7(a)
- SBA 504
- 36-month projections
- Written assumptions
- DSCR
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What a lender checks on a contractors loan
Your plan answers these before the credit officer has to ask.
Backlog and pipeline
Signed work, bids outstanding and recurring service agreements, so revenue isn't just a guess.
Margin by job type
Gross margin for service, replacement and project work shown separately.
Receivables
AR aging, collection timing and customer concentration.
Work in progress
For project contractors, the WIP schedule and over- and under-billings.
Licensing and bonding
Licenses, bonding capacity and insurance that match the work you plan to take on.
Seasonality
Monthly cash flow through slow months, and the working capital to cover them.
Numbers your plan will show
Every figure comes with a written assumption, across 36 months of P&L, balance sheet and cash flow.
- Backlog
- Revenue mix (service vs. project)
- Gross margin by job type
- AR days
- Working capital
- Equipment & fleet
- DSCR by year
Plans for every kind of request
Startups, acquisitions, expansions and property purchases, for SBA 7(a), SBA 504 and conventional bank loans.
- Working capital
- Equipment & vehicles
- Contractor acquisition
- Partner buyout
- Shop or yard purchase (504)
- Expansion
Common questions
My business is seasonal. Does that hurt my application?
Not if the plan shows it clearly. Monthly projections show the slow months and how working capital covers them, and lenders prefer that to annual numbers that hide it.
Can you write a plan for buying an HVAC or plumbing company?
Yes. Acquisition plans use the seller's tax returns, documented add-backs, service agreement revenue and a transition plan for customers and technicians.
Do you need my WIP schedule?
If you do project work, yes. Lenders often ask for it, and it lets us show margins and cash flow accurately.
SBA business plans for any industry
Ready to put your loan request in front of a lender?
Name, email and phone. That's all it takes to get started.