Support Your Laundry Business With Equipment Financing
Owning a laundry facility offers an excellent opportunity to earn passive income. However, as with any other investment, there are upfront costs. One of these costs is the laundry equipment that will serve the business. For some people, covering the costs of tens of thousands of dollars' worth of commercial equipment upfront might be a challenge, but laundry equipment financing can help. If you have plans to open a business, learn more about this process.
Loan Options Vary
Financing for laundry equipment is available in various forms. However, two more common options include manufacturer financing and financial institution financing. With manufacturer financing, you can finance your equipment through a program account set up directly with the manufacturer of the products. This option can simplify things for people who plan to use the same brand throughout. The alternative is to secure financing through an institution, such as a bank or lending organization.
Whichever lending method you decide on, you typically have the option to choose a repayment plan that works best for you. For some financing programs, the payment might be made on a bi-weekly or monthly basis, and you will have the option to pay by a due date or have an auto-draft set up from your business account. Keep in mind that many lenders allow you to make advance payments to pay off the financing earlier without penalty.
One of the keys to launching a successful laundry facility is having the equipment on hand to serve customers. Again, not every new business owner has the funds to fully furnish the business, so they may fall short on some of their equipment needs initially. If customers recognize a lack of necessary equipment, they may not come back. Financing allows you to completely furnish your business with all the equipment you need so that you can be fully open for business on day one and satisfy your customers better.
Laundry equipment financing is typically considered a form of commercial financing. Consequently, unlike personal financing, your income and credit score are not the sole factors in the approval process. Equipment financiers will often consider any business plans you have if you are a new business or your sales history if you are an existing business. Both scenarios can create an easier pathway to approval.
Keep all of this information in mind as you plan to open your business and secure laundry equipment financing.