FINANCING

Most coin laundry owners will need help with financing. Few owners have enough cash on hand to finance their own business. As I have told many who did have enough money to pay cash, that it is not the best way to maximize your profit for a variety of reasons. It is always good to leverage some of your business expense. It will make your return on investment (ROI) greater. Very often equipment manufacturers will help you finance the cost of your equipment at very competitive rates. Sometimes a bank that you have a good relationship with will also help you with financing some of the "hard costs" such as equipment.

Almost no one will finance "soft costs" such as leasehold improvements. Soft costs are non-recoverable costs, and finance companies do not like to finance those expenses. The Small Business Administration (SBA) is another source for financing, which comes from the federal government. SBA, given proper credit and assets will generally finance 2/3 of your total investment. Sometimes they will even budget working capital and package it along with the loan. SBA does not make direct loans, they usually make their loans through a bank or other approved lending institution. Some equipment manufacturers have their own finance company whose only role is to finance some, most or all the equipment cost for your washers, dryers, and other related items at very competitive rates and terms. Banks will typically finance based solely on your assets, credit and business plan. ADL has been successful in assisting new store owners as well as existing store owners in their quest for suitable financing. Procuring suitable financing can be a "rocky road" to travel. If you do not apply for a loan correctly at first, the source of your financing may not want to consider your application a second time.