Overview
A car wash P and L statement is the starting point for underwriting, but lenders do not accept it at face value. They look for clarity, verifiability, and an expense picture that reflects real operations. A clean P and L can speed approvals and improve loan sizing.
Revenue is evaluated for support and consistency
Lenders compare P and L revenue to deposits and reporting. If the P and L does not reconcile to bank activity, underwriters may discount revenue until the story becomes consistent.
Expense normalization is common
Utilities, repairs, chemicals, and maintenance are frequently reviewed for realism. If these categories look low, lenders may increase them to typical operating levels to avoid approving a payment that only works on paper.
Membership revenue is reviewed differently
If memberships are a material portion of revenue, lenders often ask for membership reporting that shows active members, billing totals, and churn. The goal is to understand predictability and whether the recurring revenue is stable.
Add backs and adjustments
Borrowers sometimes present add backs for one-time expenses. Lenders typically accept add backs only when they are clearly documented and truly non-recurring. Vague add backs usually do not help.
What makes a lender-friendly P and L
- Clear categories with consistent labeling across periods
- Monthly detail that shows seasonality and trends
- Realistic maintenance that reflects the equipment-intensive nature of the business
- Clean support that reconciles to deposits and reporting
Bottom line
Lenders use the P and L to size cash flow, but they verify revenue and normalize expenses. A clear, realistic, and well-supported P and L produces the best underwriting outcome.