What is the buyer really reviewing?
Customer financing helps a homeowner or another eligible customer pay for a plumbing purchase over time. The provider and its lending partners may handle a loan while the shop receives a merchant payout. That process differs from an acquisition loan used by the buyer to purchase the business.
Review it within the valuation and finance hub. A financed-job cash bridge is a reconciliation from a customer's financed purchase to the shop's net cash receipt, with fees and later adjustments shown. It connects the job file, provider records and bank activity without assuming that an approval is already cash.
Which stages need to be matched?
Identify the application, accepted terms, work completion, customer confirmation and payout. Show dates and status for each. A scheduled water-heater job may have an accepted financing option but no completed work or released funds. A completed job can also have a settlement issue that needs review.
Wisetack's merchant FAQs describe its process, including customer confirmation before funds are disbursed. Use that as a named provider example, not a rule for every financing product. Obtain the target's actual merchant agreement, current process and transaction records before using the FAQ to explain its cash cycle.
What should the transaction register contain?
Use a job identifier that can be matched across systems. Avoid collecting unnecessary consumer loan information in the general deal folder. Ask the provider and advisers what records the company may lawfully share and retain for diligence and after closing.
| Stage | Evidence | Question for the buyer |
|---|---|---|
| Customer acceptance | Provider status and job record | Was the offered loan accepted? |
| Completed work | Invoice and completion evidence | What work supports the charge? |
| Release or confirmation | Provider transaction record | Was the required step completed? |
| Settlement | Payout report and bank deposit | How much reached the shop? |
| Fees | Actual schedule and deductions | What reduced the gross amount? |
| Later adjustment | Refund or dispute record | Could cash move again? |
This is an editorial register, not a provider form. Keep the current status and the supporting record together so an old export does not cover a later dispute.
How should merchant fees affect earnings?
Read the target's fee schedule and compare it with actual deductions. Check whether terms differ by product, promotion or transaction. Separate lender charges to the customer from charges borne by the shop. They affect different parties and should not be merged in a margin calculation.
A seller may show financed-job revenue gross while fees sit in another expense line. Reconcile both. Do not add back ongoing merchant costs simply because the provider collects them before making a payout. If the buyer expects different terms, show that as a proposed change with evidence, not as an existing benefit of the target.
What does a payout example look like?
Assume an illustrative completed job has a $10,000 financed purchase. Assume the shop's hypothetical merchant fee is 3%, or $300, and there are no other deductions. Net payout is $10,000 − $300 = $9,700. These are invented inputs, not a named provider's fee or an offer of consumer credit.
Now assume a separate $1,000 adjustment is supported by the actual transaction records. The remaining net cash from those assumptions is $8,700. Show that adjustment under its own identifier and reason. Do not treat a lower payout as a fee until the settlement report explains it.
The job's gross profit still requires labor, materials and other costs. A $9,700 deposit is not $9,700 of profit. Trace the revenue and cost presentation in the accounts, and ensure the fee is not subtracted twice through both net revenue and an expense entry.
Does the lender absorb all merchant risk?
Do not confuse the customer's repayment obligation with a dispute about the work. Wisetack's disputes policy describes evidence requirements and circumstances in which affected funds may be withdrawn while a dispute is reviewed. It also describes merchant reimbursement where a dispute is resolved for the consumer.
Read the current policy and actual notices for the specific case. A provider summary does not tell you whether a particular plumbing job is disputed or what the result will be. Keep pending cases, amounts, evidence and response owners in a separate schedule. Do not invent one response deadline for all providers.
Why might consumer claims follow a credit contract?
The FTC's Holder Rule overview explains preservation of certain consumer claims and defenses against purchasers of credit contracts. That is a reason to obtain legal review of the credit structure and governing documents, rather than assuming loan financing removes every work-related claim.
The rule's applicability and remedies require analysis of the actual arrangement. This article does not decide that every customer loan, job or merchant dispute falls within it. Have counsel examine the contracts and parties. Keep that legal question separate from the provider's operational process for a refund or dispute.
How should closing cash and open jobs be treated?
Sort jobs that are approved but unfinished, completed but unsettled, settled and disputed, or resolved. Then decide which items enter the closing balance-sheet review and which party handles later steps. An approved loan should not be added to cash while the same job receivable is also counted at full value.
Use the working-capital peg guide to define the deal treatment. The agreement should address funds released after closing for pre-closing work and any related fees or refunds. Mark uncertain collectability and timing without treating the entire financed-job balance as either safe cash or a loss.
What should the provider confirm about the sale?
Describe the buyer entity, ownership change, business location and intended account use accurately. Ask about enrollment, reassessment, old transactions and permitted access. Obtain written confirmation of the required steps and timing. A customer financing account is not a transferable asset merely because it appears on the seller's systems list.
Do not redirect payouts to a new bank account as an informal test. Banking changes require the authorized provider process and verified instructions. Preserve the connection between historical transactions and the party responsible for them. Use limited access where appropriate; copying staff credentials is not a sound way to prove continuity.
How should the parties stage the review?
Bring the controller, operations lead and advisers into the workstream. The job team knows whether service was completed, while the accounting team can trace the deposit. Both are needed to explain gaps. Keep the provider's current terms beside the dated transaction export.
- Identify financing providers, lending arrangements and merchant accounts.
- Match sampled jobs through acceptance, completion and settlement.
- Reconcile fees, net deposits and the earnings presentation.
- Review open disputes, refunds and the proposed closing allocation.
- Confirm the buyer's approved account path and historical record access.
The asset allocation register can help distinguish purchased assets from accounts requiring separate consent. This is our diligence sequence; it does not authorize loan applications, refunds or provider changes.
Which conclusions belong in the decision memo?
Show verified net settlements, open stages, provider terms and unresolved rights. State the reviewed period and sample limits. If the target claims financing improves average ticket or close rate, ask for comparable job data and the costs that accompany the claimed gain. A product feature alone is not acquisition evidence.
The sale tax guide helps keep purchase reporting distinct from customer credit activity. Finish with a practical handover plan for jobs and records. A buyer needs a supported cash process and clear responsibility for open cases before relying on financing as a stable part of the acquired shop.