Dylan Caraway, Senior Loan Officer of Service Contractors at Live Oak Bank, shares insider knowledge on how trades businesses can secure financing for growth, acquisitions, and succession planning. His team specializes in understanding the unique value of HVAC, plumbing, and electrical contractors, helping them access capital when traditional banks may not recognize their true worth.
• Live Oak Bank takes an industry-focused approach rather than regional, lending nationwide to specialized industries
• The bank has been the #1 SBA 7A lender by dollar volume since 2017
• They evaluate businesses primarily on cash flow coverage rather than tangible collateral
• The critical debt service coverage ratio they look for is 1.25X, meaning $1.25 of cash flow for every dollar of debt
• Existing business owners may qualify for 100% financing through the SBA expansion program
• Banks scrutinize both business financials and personal credit/financial management
• Clean books are essential – no "mattress cash" or handwritten cash additions to P&Ls
• Succession planning should start 1-5 years before exit to allow time for financial optimization
• Internal buyouts offer advantages as employees already know the business operations
• The LiveOak Express program can provide up to $500K in working capital with 1-2 week closing times
For questions about financing options for your service business, contact Dylan Caraway at 252-671-2427 or [email protected].
🎙️ Profit & Grit by Tyler Martin
Real stories. Real strategy. Real results for service-based business owners.

🔗 Website: ProfitAndGrit.com
📍 LinkedIn: linkedin.com/in/thinktyler
📸 Instagram & TikTok: @profitandgrit
📅 Want to grow your business with smarter financial strategy?
Book a free intro meeting