What a Loanability Letter looks like.

Date: June 30, 2026 Prepared for: The owner, Sample Manufacturing Co Basis: Loanable quiz responses, 8 questions

Grade B, 12 of 16. Close to lender-ready, with gaps a buyer's underwriter would find.

Findings

Your answers describe a business a lender could finance, but not yet on the file you would hand them today. The core is sound: books close monthly, returns tie to the statements, and coverage clears at a realistic price. What holds the grade at B is evidence, not economics. The three items below are where an underwriter would push first, in the order we would fix them.

Fix first

1. Addback documentation. You marked owner addbacks as partially documented. Anything claimed without receipts, contracts, or payroll records behind it gets deleted in a quality of earnings review. Worth: this is the number your multiple gets applied to. Every addback that survives review is earnings you can prove, and every one that dies shrinks the price a lender will support.
2. Customer concentration. Your largest account sits above the level most credit committees carry comfortably without contracts behind it. Worth: concentration is the finding buyers negotiate with. Contracts or a broader base turn your biggest account from a discount argument into a strength.
3. Owner dependence. Key relationships and pricing decisions still run through you. A lender reads that as a business that leaves with the seller. Worth: a documented transition plan makes the same company financeable. Dependence is the difference between a buyer who can borrow and one who walks.

None of this is surgery. On businesses with this profile, the work is documentation and sequencing, and it is best started before a buyer appears rather than after.