Banking · Credit Application · Financial Ratios · Construction Finance · Line of Credit
Bank Credit · Line of Credit · Construction Finance · Financial Ratios · Credit Application
What Banks Look For
in Contractors.
Most construction subcontractors go into a credit application hoping for the best without knowing exactly what the banker is evaluating. Understanding what banks specifically look for — and preparing for those questions before the meeting — changes approval rates and terms significantly.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You Applied Without Knowing What They Were Looking For
A banker reviewing a construction subcontractor's credit application is looking at a specific set of ratios and documents. If you don't know what they are, you can't prepare for them. Walking in with last year's tax return and hoping for the best is not a strategy.
02
Your Financial Statements Don't Tell the Right Story
Construction financial statements confuse bankers who don't understand the industry. Overbillings look like unexplained liabilities. Underbillings look like questionable assets. Retainage receivable looks unusual. If you don't explain these items proactively, the banker fills in the gaps with concern.
03
You Applied When You Needed Money Urgently
The worst time to apply for a line of credit is when you urgently need one. Bankers approve credit for businesses they know and trust — not for businesses presenting financials they've never seen before in a meeting driven by urgency.
How SPM Fixes It
The Six Things Bankers Look At
Current ratio: current assets divided by current liabilities — target above 1.5. Working capital: dollar amount of current assets minus current liabilities. Debt service coverage: net operating income divided by total debt service — target above 1.25. AR aging: no single customer over 30–40% of total AR, no significant balances over 90 days. Revenue trend: 2–3 year revenue history showing stability or growth. WIP schedule: reconciles to balance sheet, shows no systemic overbilling, backlog supports future revenue.
The Construction-Specific Explanation Package
SPM prepares a banker presentation package for Executive clients that includes: current financial statements with a brief narrative on construction-specific items (overbillings, underbillings, retainage), current WIP schedule reconciled to the balance sheet, AR aging with concentration analysis, backlog summary, and a 12-month revenue trend. The package answers the banker's questions before they're asked.
SPM Maintains the Profile That Gets Credit Approved
The financial profile that gets construction credit approved — clean books, current WIP, healthy ratios, documented backlog — is exactly what SPM builds and maintains for every client. When your banker calls for a quarterly update, the numbers are current and the story is clean. Executive clients also have access to our vetted construction lending partners when the right bank relationship isn't yet established.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
What is debt service coverage ratio and what should it be?
Debt service coverage ratio (DSCR) equals net operating income divided by total annual debt service (principal and interest payments). A ratio above 1.25 means your business generates $1.25 of operating income for every $1.00 of debt service — which most banks consider the minimum for commercial credit. Below 1.0 means your business doesn't generate enough to cover existing debt service, which typically results in a credit denial regardless of other ratios.
How does AR concentration affect credit applications?
Banks look for customer concentration risk in your AR. If one GC represents more than 30–40% of your total accounts receivable, banks may view that as concentration risk — the business is too dependent on a single customer for its cash flow. Diversifying your GC relationships over time reduces this risk and improves your credit profile.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.