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

Dance Studio Business Loans: Financing For Dance Schools & Teachers
March 5, 2018
Professional Service Industry Business Loans: Financing for Professional & Business Services
February 25, 2018
Medical Professional Working Capital: Operating Capital For Doctors Offices
February 1, 2018
Hospitality Industry Loans: Financing Options For Hospitality Companies
January 30, 2018
Retail Store Loans With Bad Credit: Poor Credit Retailer Financing
January 22, 2018
Appliance Store Business Loans: Funding Options for Appliance Shops
January 21, 2018
Nonprofit Business Loans: Working Capital for Non-profit Companies and Organizations
January 17, 2018
Manufacturing Working Capital: Operating Capital for Manufacturers
January 3, 2018
Timber, Lumber & Wood Industry Business Loans
January 1, 2018
Houston Business Loans: Working Capital for Houston Small Businesses
December 7, 2017
Construction Working Capital: Construction & Contractor Working Capital
December 1, 2017
Aviation Industry Loans: Financing for Aviation Companies
November 28, 2017
Entertainment Industry Loans: Capital For Film & Entertainment Companies
November 27, 2017
Vegan & Vegetarian Restaurant Loans
November 21, 2017
Barber Shop Loans: Financing & Working Capital For Barbers
November 15, 2017
10 Best Merchant Cash Advance Tips: How to Get the Best Business Cash Advance
October 11, 2017
High Risk Working Capital: Cash Flow for High Risk Small Businesses
October 10, 2017
Alternative Business Loans With Bad Credit: Nontraditional Bad Credit Lenders
October 5, 2017
Pet Grooming Business Loans: Financing For Pet Groomers
October 4, 2017
Business Loans To Pay Taxes: Business Tax Funding Options
October 3, 2017
Business Bridge Loans: How to Get Bridge Financing For Working Capital?
September 27, 2017
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