Cash Flow & Debt Service Modeling in Manassas, VA
Before you sign for acquisition financing, apply for an SBA loan, or commit to a major investment, you need to know one thing: can you actually afford the payments? Not just on paper—but when cash is tight, when revenue dips, when unexpected expenses hit.
We build cash flow and debt service models that pressure-test affordability, calculate your DSCR, and show you exactly how much runway you have. Serving business owners across Northern Virginia and the DC area with clear, lender-ready financial analysis.
Book a Free Advisory CallWhat Cash Flow & Debt Service Modeling Covers
Whether you're financing an acquisition, applying for a business loan, or evaluating a major capital decision, our modeling gives you the numbers you need to decide with confidence.
Who This Is For
Cash flow modeling is most valuable when you're facing a specific decision that involves debt, investment, or significant cash commitment.
Business Buyers Financing an Acquisition
You need to prove the deal cash flows before the bank will lend—and before you should commit
Owners Applying for Business Loans
SBA 7(a), SBA 504, or conventional loans all require projections that show repayment ability
Growing Businesses Planning Major Investments
New equipment, facilities, or hires—understand the cash impact before you commit
Owners Evaluating Debt Capacity
How much can you safely borrow? What's your runway if revenue dips?
Businesses in Cash-Tight Situations
Understand exactly how long your runway is and what levers you can pull
Sellers Preparing for Due Diligence
Buyers will model your cash flow—better to have your own analysis ready
What You Get (Deliverables)
You don't just get a spreadsheet—you get a complete analysis package you can use for decision-making, lender presentations, and ongoing reference.
The Biggest "Gotchas" Modeling Catches Early
These are the surprises that kill deals, stress businesses, and catch owners off guard. Good modeling surfaces them before you commit.
Modeling Requires Reliable Financial Inputs
A cash flow model is only as good as the data behind it. If your books are messy, incomplete, or haven't been reconciled, we may need to clean them up first—or the model won't be reliable.
For acquisition modeling, we also analyze the seller's books to identify normalization adjustments and potential red flags.
Modeling for Acquisitions (Buy-Side Support)
Acquisition financing requires a different kind of model. You're not just projecting your existing business—you're projecting a business you don't yet own, often with incomplete information and a seller who's motivated to present things favorably.
We build acquisition models that account for deal structure (asset vs. stock), financing terms (SBA, conventional, seller notes), working capital adjustments, and realistic integration costs.
What Buy-Side Modeling Includes:
- Seller financials analysis and normalization
- Deal structure comparison (asset vs. stock, allocation)
- Financing scenario comparison (SBA vs. conventional vs. seller)
- DSCR at various price points to support negotiation
- Working capital and integration cost estimates
How Cash Flow Modeling Connects to Tax Planning
Cash flow and taxes are deeply connected. Your quarterly estimated payments, year-end tax liability, and owner distributions all affect how much cash you actually have available for debt service.
We model taxes into our cash flow projections—not just as an annual expense, but as quarterly cash outflows that compete with debt payments and operating needs.
Our Modeling Process (3 Steps)
We move quickly without cutting corners. Most modeling engagements are complete within 2-3 weeks.
Data Gathering & Normalization
We collect historical financials, understand your business drivers, and normalize for one-time items and owner adjustments to establish a reliable baseline.
Model Building & Scenario Analysis
We build a dynamic model tailored to your situation, then stress-test it under different assumptions—revenue growth, margin changes, timing shifts.
Delivery & Decision Support
You receive a complete model with documentation, plus a walkthrough so you understand the numbers. We're available to present to lenders or answer follow-up questions.
FAQs — Cash Flow & Debt Service Modeling
Common questions from business owners in Manassas, Northern Virginia, and the DC area.
QWhat is debt service coverage ratio (DSCR) and why does it matter?
DSCR measures whether a business generates enough cash flow to cover its debt payments. It's calculated as net operating income divided by total debt service. Lenders typically require a DSCR of 1.25x or higher—meaning you generate 25% more cash than needed for payments. We help you understand your current DSCR and model how it changes under different scenarios.
QHow far out should cash flow projections go?
For M&A transactions and SBA loans, we typically model 3-5 years of projections. For ongoing advisory, we focus on 13-week and 12-month rolling forecasts. The right timeframe depends on your specific situation—lenders and buyers often have specific requirements we can help you meet.
QCan you help us prepare for SBA loan applications?
Yes. We prepare cash flow models and financial projections that meet SBA 7(a) and 504 requirements. We also help you present your business in the best light to lenders while keeping projections realistic and defensible.
QWhat if our historical cash flow is inconsistent or messy?
We help normalize cash flow for one-time events, owner adjustments, and seasonal variations. Clear explanations of historical variations actually strengthen your position with buyers or lenders—they want to see you understand your own numbers.
QHow does this differ from cash flow planning?
Cash flow modeling is typically a one-time project focused on a specific decision—an acquisition, loan application, or major investment. Cash flow planning is ongoing work to manage your weekly and monthly cash position. We offer both, and they often work together.
QDo you work with our lender or broker directly?
We can. We regularly coordinate with SBA lenders, commercial banks, and business brokers to ensure our projections meet their requirements and answer their questions. Having a CPA-prepared model often speeds up the underwriting process.
QWhat do we need to provide to get started?
We need 2-3 years of historical financial statements (P&L, balance sheet), recent bank statements, details on existing debt, and information about the specific opportunity or decision you're modeling. For acquisitions, we also need the seller's financials and deal terms.
Ready to Model Your Cash Flow?
Whether you're financing an acquisition, applying for a loan, or evaluating a major investment, let's build a model that gives you confidence in your numbers. Serving business owners throughout Manassas, Northern Virginia, and the DC area.
Book a Free Advisory Call