Overview
When financing a new car wash, the construction budget is one of the most important underwriting documents. Lenders use it to evaluate project completeness, cost realism, and whether the sponsor has planned for overruns and timing gaps.
What a lender considers a complete budget
A complete construction budget includes all hard costs and soft costs, not just the visible build items. Lenders want a budget that matches the project scope and schedule, with clear categories and realistic numbers.
Budget categories lenders expect
- Land and site work including grading, paving, drainage, and utility tie-ins
- Vertical construction including foundations, building shell, canopies, and mechanical space
- Wash equipment and technology including payment systems, POS, vacuums, and reclaim where applicable
- Soft costs such as architecture, engineering, permits, legal, insurance, and lender-related fees
- Contingency for cost overruns and scope changes
Contingency requirements
Most lenders expect a contingency line item because construction overruns are common. Projects that omit contingency or set it too low create approval friction and increase the chance of a mid-project funding shortfall.
Documentation that supports the budget
Lenders prefer third-party support such as contractor bids, vendor quotes, and detailed scopes of work. A budget that is only a single-page estimate usually leads to more questions and slower underwriting.
How the budget ties into draws
The lender will typically fund construction through draws tied to completed work. A clear budget helps the lender map draw categories and reduce disputes during inspections.
Bottom line
Car wash construction financing approvals are smoother when the budget is complete, supported by bids and quotes, includes soft costs, and contains a realistic contingency.