Give Us a Call 24/7 to Speak to a Loan Specialist: (866) 526-0238
Give Us a Call 24/7 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 Started

Recent Posts

Growth Capital: How to Get Capital to Grow Your Business
August 29, 2017
Alternative Business Funding: What are the Alternative Commercial Funding Options?
August 23, 2017
Secured Business Loans: How to Get the Best Secured Financing for Your Company?
August 14, 2017
Commercial Mortgage Brokers: How a Commercial Mortgage Broker Helps with Commercial Lending
August 9, 2017
No Collateral Business Loans: How to Get an Unsecured Business Funding Without Providing Collateral
August 8, 2017
Long Term Business Loans: Long-Term Small Business Lending Options
August 7, 2017
Physical Therapy Business Loans: Financing For Physical Therapist Practices
August 3, 2017
Franchise Working Capital: Short-Term Funding Options for Franchises
August 1, 2017
Cannabis Business Loans: Dispensary Financing and Marijuana Industry Investment
July 26, 2017
Commercial Loan Broker: Types of Commercial Finance Brokers
July 19, 2017
Utah Business Loans: Financing For Utah Small Businesses
July 18, 2017
Georgia Business Loans: Financing For Peach State Small Businesses
July 17, 2017
Low Doc Business Loans: Financing with Low or No Documents:
July 12, 2017
Arizona Business Loans: Financing For Arizona Companies
July 11, 2017
Investment Real Estate Loans: Financing For Investment Properties
July 10, 2017
Commercial Balloon Refinancing: How to Refinance Commercial Balloon Mortgage
July 8, 2017
Office Building Loans: Commercial Financing and Mortgages For Office Buildings
July 3, 2017
Idaho Business Loans: Financing For Gem State Idaho Companies
June 30, 2017
MCA Split vs. MCA Lockbox: Comparing Different Merchant Cash Advance Funding Payments
June 28, 2017
Purchase of Future Receivables: Selling Future Bank and Merchant Receivables
June 26, 2017
101 Business Loan Tips: Advice For Small Businesses Seeking Loans
June 22, 2017
Types of Commercial Real Estate Loans & Mortgages
June 21, 2017
Merchant Cash Advance Without a Confession of Judgment: Cash Advances with No COJ
June 19, 2017
Two Merchant Cash Advances Stacked? Reasons Business Resort to Stacking Cash Advances
June 15, 2017
Alternatives to Merchant Cash Advances: Non-MCA Funding Options
June 13, 2017