Give Us a Call to Speak to a Loan Specialist: (866) 526-0238
Give Us a Call to Speak to a Loan Specialist: (866) 526-0238

Laundromat Financing

There has been a major decline in home ownership — especially among millennials. A Census national summary report shows that in the 3rd quarter of 2014 there were 24,250,000 rentals in the United States.

With an increase in renters comes the need for coin-operated laundromats. A unique aspect of coin operated laundromats is the fact that a singe laundromat location can generate as much as $300,000 in revenue annually with very little overhead, while also having no inventory or receivables.

Bank Loans For Laundromats

Traditional bank term loans or lines of credit is usually the first choice of laundromat owner seeking a small business loan. With their great rates and favorable terms, it makes sense to be an attractive source. Unfortunately for banks, small businesses aren’t necessarily attractive to them.

If you do happen to get a traditional loan or line of credit from a bank (who only approve 1 in 4 small business loans) you will like obtain rates between 5-10% with repayment terms ranging from 1-10 years.

SBA Loans For Laundromats

SBA small business loans are always an attractive financing option because of their low rates (currently around 6-8%) and long terms (up to 7 years for working capital, 10 years for equipment financing and 25 years for real estate).

But if you’re looking to secure SBA laundromat financing, you’re going to need to make sure the laundromat’s books are in great shape. You’ll generally need 3 years of business and personal tax returns, along with 3 years of the company’s financials.

Equipment Leasing For Laundromats

Over the years of usage, there is wear and tear on machinery. A cash intensive business audit finds that coin-operated laundromat equipment is used, on average, between 3 and 8 times a day. Many laundromat owners find leasing business equipment is the best way to go when financing their machines.

Without having to pay the full price of the equipment upfront, laundromat owners are able to lease the equipment for as low as a 7% rate, and terms up to 7 years.

Alternative Laundromat Loans

Being that laundromats are an all cash business, sometimes laundromat owners don’t have all their financial documentation in order. Or maybe their credit isn’t quite good enough for bank-rate small business financing.

The next best option is an alternative small business loan. With a simple application, bank statements and YTD financial statements, a laundromat owner can obtain financing for their business in the matter of days to a couple weeks. Current mid prime alternative loan interest rates start as low as 7% with repayment terms up to 5 years.

Merchant Cash Advances For Laundromats

For coin-operated laundromat owners that have bad credit and need a business loan, or lack any financial records other than bank statements, a merchant cash advance financing facility can be the best — and only — financing option

Merchant cash advance financing isn’t a loan, but is instead the sale of the bank’s future deposits in exchange for an upfront sum. Rates are pretty expensive ranging from 16-100%, with repayment terms between 4-24 months.

Who We Are

GUD Capital is a nationally recognized leader in the financing industry for providing the best business lending solutions available to small and mid-sized businesses. We leverage our network of 4,000 competing commercial lenders to provide your business the largest selection of commercial financing options.

Get a Loan

    Paycheck Protection Program Broker: SBA PPP Experts, Help & Assistance
    March 29, 2020
    Coronavirus SBA Disaster Loan Broker: Help Applying for COVID-19 SBA Disaster Loans
    March 19, 2020
    COVID-19 Emergency Business Loans: Fast Coronavirus Business Funding
    March 17, 2020
    COVID-19 Nursing & Medical Clinic Loans: Coronavirus Loans For Healthcare Facilities
    March 15, 2020
    Coronavirus Business Loans: Coronavirus Emergency Working Capital
    March 11, 2020
    Minnesota Business Loans: North Star State Business Funding
    September 3, 2019
    Chicago Business Loans: Windy City Small Business Funding
    September 3, 2019
    Phoenix Business Loans: Valley of the Sun Business Financing
    September 3, 2019
    Mall Food Court Loans: Funding For Mall Restaurants
    August 29, 2019
    Subway Loans: Working Capital For Subway Franchises
    August 28, 2019
    Austin Business Loans: Funding for Austin Small Businesses
    August 27, 2019
    Web Based Company Loans: Funding for E-Businesses
    August 26, 2019
    Italian Restaurant Loans: Funding Options For Italian Cuisine Eateries
    August 26, 2019
    Government Contractor Business Loans: Federal Govt Contractor Financing
    August 21, 2019
    Home Based Business Loans
    August 20, 2019
    501(c)(3) Business Loans — Nonprofit Working Capital
    August 19, 2019
    General Practitioner Business Loans
    April 9, 2019
    Reverse Consolidations: Best MCA Reverse Consolidation Options
    October 18, 2018
    Acting Studio Business Loans: Financing For Drama Schools
    September 5, 2018
    Massachusetts Business Loans: Financing For Bay State Small Businesses
    September 4, 2018