Distinguish equity already available, conditional financing and cash reserved for operations. A funding plan should cover the complete transaction and explain what remains subject to approval.
Prepare a complete uses-of-funds schedule
List purchase consideration, transaction costs, deposits, lender-related costs, immediate equipment work, working capital and reserves. Identify whether land is included. Compare the schedule with the buyer’s actual sources rather than using a headline purchase-price ceiling.
Keep cash available for a deposit separate from equity needed at closing and liquidity retained after closing. Ask the lender and counsel how proposed seller financing, escrow or other conditional sources should be treated.
Show funding authority and availability
Use current evidence appropriate to the stage of the discussion and confirm who owns or controls the money. Investor interest, a prospective asset sale and an available account balance are different sources. Avoid presenting a lender conversation as a loan commitment.
Share sensitive statements only through an agreed private channel. Do not upload account numbers or full financial records to a public website form. Advisors can specify what can be redacted and what they need to verify.
Have the lender review the actual borrower
Discuss the ownership, operating role, credit, cash flow, property and guarantees. SBA’s 7(a) overview explains that applications are handled through lenders and eligibility depends on the business and borrower. It does not approve this purchase or fix the equity requirement.
Ask for a written list of documents, outstanding conditions and expected process. Explain what has been evaluated and what is still preliminary when presenting the buyer’s readiness to a seller.
Protect the post-closing business
Keep a reserve for payroll, utilities, maintenance and lower-than-forecast sales. Show a downside period and an unplanned repair. A buyer can have enough money to close yet insufficient liquidity to keep the wash operating comfortably.
Sources & evidence
- SBA: 7(a) acquisition financing
Program uses and lender-led eligibility; not an approval or equity quote. - SBA: buying an existing business or franchise
Acquisition preparation and differences between independent and franchised businesses.
Links checked for this editorial pass on October 14, 2026. General reference material does not establish a site’s revenue, value or eligibility. Examples are illustrative where labeled.
Continue your preparation
- Illinois car wash due diligence: an evidence checklist
- A car wash letter of intent: clarify the deal before diligence
- Financing an Illinois car wash acquisition
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