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The Landscaper’s Banker’s Checklist

Oct 11, 2025 | News, News & Press, Press

đŸŒ± THE LANDSCAPER’S BANKER CHECKLIST

How to Speak the Banker’s Language & Win the Loan You Deserve
By Tony Bass – Super Lawn Toolkit

If you’ve been in the lawn or landscape business for more than a minute, you already know—mowers, trucks, and crews don’t run on grass clippings. They run on cash, credit, and confidence.

When you walk into a bank asking for a loan, your handshake and your hustle aren’t enough anymore. The banker’s gonna want numbers, ratios, and proof that your business can pay the money back and still make a profit!

That’s why I built the Landscaper’s Banker Checklist—to help hard-working business owners like you learn how bankers think before you sit across that desk from them. You see, when you can speak the language of finance with clarity and confidence, you transform from “just another contractor” into a credible business partner.

This checklist will help you do exactly that—so you can grow your business, build wealth for your family, and keep those green machines rolling down the road.

🏩 Step 1: Know the Banker’s 5 Favorite Ratios

Ratio Name Formula Target Range What It Means to the Banker Tony’s Plain-English Tip
1. Debt Service Coverage Ratio (DSCR) Net Operating Income Ă· Annual Debt Payments 1.25 or higher Shows if your cash flow can cover loan payments with room to spare. The higher the DSCR, the happier the banker. Shoot for 1.5+ before you ask for more debt.
2. Debt-to-Equity Ratio Total Liabilities Ă· Owner’s Equity 2:1 or less Reveals how much you owe compared to what you own. Keep your equity strong by reinvesting profits instead of taking it all home.
3. Current Ratio Current Assets Ă· Current Liabilities 1.2–2.0 Tells the banker if you can pay your short-term bills. Cash is king! A ratio over 1.5 keeps your banker calm.
4. Net Profit Margin Net Income Ă· Total Sales 5–10% typical in landscaping Measures business efficiency and profitability. 8%+ = strong. 4% or less = shaky. Learn your Price Right Formula to fix this.
5. Trend Line Analysis Year-over-Year Sales & Profit Growth Upward trend preferred Proves the company is growing in a healthy, controlled way. Three years of growth tells a powerful story — especially when profits grow faster than sales.

💬 Step 2: Talk Like a Banker — Not Like a Mower Mechanic

Banker Says… You Say Back…
“Your DSCR is a little tight.” “Yes, but these new trucks will boost our labor productivity 5%, which adds $50,000 to our bottom line.”
“We’re concerned about your debt-to-equity ratio.” “Understood. We’ve paid down short-term debt and retained earnings for growth capital.”
“Your profit margin is below average.” “That’s why we’re upgrading our fleet — fewer breakdowns, less overtime, and higher efficiency.”
“What collateral can you offer?” “Two new Super Lawn Trucks — insured, income-producing assets with 10-year service life.”
“Tell me about your management team.” “We’ve been in business 5 years, maintain monthly financial statements, and meet payroll on time every week.”

🧼 Step 3: Quick Reference Targets

Financial Measure Healthy Range Warning Zone
DSCR 1.25–3.0 Under 1.25
Net Profit Margin 5–10% Under 4%
Current Ratio 1.2–2.0 Under 1.0
Debt-to-Equity 1.0–2.0 Over 2.5
Cash Reserves 1–3 months of expenses Less than 30 days

📈 Step 4: Prove How the Loan Improves Your Business

When you ask for financing, show the math that connects the loan to a measurable improvement:

Before Loan After Loan
4% Net Profit 6% Net Profit (after 5% productivity boost)
$1,000,000 Sales $1,050,000 Sales
Frequent Repairs Lower Maintenance Costs
Weak Branding Rolling Billboard Trucks
Reactive Hiring Confident Growth Plan

💡 Tony’s Tips for Talking Banker

  • Bring clean financial statements — P&L and balance sheet for 2–3 years.
  • Show you know your numbers — don’t hand the banker a mystery.
  • Prove your loan adds profit — not just debt.
  • Be early, be polite, be prepared. Bankers love professionals.
  • Leave emotion out, bring logic in. You’re running a business, not begging for a favor.

Before you ever shake hands with that loan officer, take some time to calculate your own numbers on this checklist. Know your DSCR, your profit margin, and your current ratio like you know the horsepower on your mower.

“Faith without works is dead.
Numbers without knowledge are dangerous.
Learn your numbers, and you’ll earn your banker’s respect.”

— Tony Bass, The E-Myth Landscape Contractor

Because when you walk in prepared, the banker sees what you already know—you’re not gambling, you’re growing. You’re building jobs, families, and communities one yard at a time. That makes you the kind of business owner the banker brags about at lunch. So don’t guess. Don’t wing it. Know your numbers, own your business, and watch the doors of opportunity swing wide open!

PS – we just recorded a webinar on this exact topic that expands even further on this subject for you! It’s called “Winning the Money Game in Landscaping”. CLICK HERE TO WATCH!