EBITDA (Earnings Before Interest, Taxes. Depreciation, and Amortization) Includes Cash Flow plus the Critical DEBT SERVICE RATIO
SBA-Capital’s proprietary EBITDA software allows the investor to quickly determine if the proposed purchase of an existing car wash or constructing a new car wash meets their minimum ROI objective. The software also allows an investor to determine if an outdated wash would be successful and qualify for a loan after renovation. Using our EBITDA software program to analyze the risk and benefit of renovating an outdated wash can prove to be one of your best car wash investments as described on SBA-Capital’s blog.
“DEBT COVERAGE RATIO” is the most the important data lenders use as they analyze your loan request. Assuming you invest 20% equity, the debt coverage ratio on the 80% loan must be a minimum of 1.25% for your investment to qualify for a loan. A debt coverage ratio below 1.25% typically does not allow the lender to approve your loan and should encourage the investor to modify their request or consider other car wash investment options.
The data from your car wash proforma inserted into our EBITDA software provides quantifiable information that allows the investor to make investment decisions based on electronic calculations as opposed to emotions or guesswork. (see the Proforma on our Blog)
Contact Hershel today via email or call him directly at 214-726-900 for your free consultation and EBITDA calculation illustrations regarding the car wash investment you are considering.