1. Unreconciled balances
Bank and credit-card balances in the books that don't tie to actual statements make every downstream number suspect. Lenders will notice quickly.
2. Unexplained clearing or suspense accounts
Round-tripping transactions through clearing accounts is fine. Leaving balances in them across periods is not. Every clearing balance should have a documented reason.
3. Weak receivable detail
A single 'A/R' number without an aged breakdown by customer is not enough. Lenders want to see who owes what, how old it is, and how it is being collected.
4. Missing debt schedules
A debt schedule listing lender, principal, interest, monthly payment, maturity, and collateral is a basic ask. If the business cannot produce one quickly, the conversation slows down.
5. No cash-flow forecast
A 13-week cash-flow forecast is not just a lender document. It is the primary way an owner shows that they know where the business is going next.
Why cleanup may be required first
If several of these signs are present at once, a lender-ready package is not the right first project. A targeted cleanup should typically come first, so that the numbers being presented can actually be defended.
Financing disclaimer
Contractor Plus Books does not provide loans, act as a lender or broker, or guarantee financing approval. We help organize and review the information typically requested during lender conversations.