Laundromat Equipment Financing or Leasing?
Should you lease or finance laundry equipment? This is a question that every business owner must answer regardless of if they are starting their first laundromat or expanding.
Leasing Laundry Equipment
Laundromats offer a mix of different services depending on customer demand and preferences. From a fully equipped wash, dry, fold service to the simple self-serve options, customers will always appreciate having a laundry facility nearby. Depending on the services you offer, you’ll need to invest in different types of equipment.
You can’t have a self-serve model without the right integrated payment machines, and you certainly can’t offer to fold clothes without some folding tables. However, as a new business owner, you will probably have a strict budget to stick to. Opening a laundromat isn’t one of the most wallet-friendly ventures when you are just starting out. You need a way to be able to install the latest washers and dryers into your store, without taking the hit from the hefty upfront costs. This is where leasing equipment comes in.
In some situations, leasing laundry equipment may seem like the smarter choice, but this method often comes with a higher monthly payment, vs. what you would pay when financing laundry equipment, and it’s possible that your equipment could be repossessed if you miss your payments.
Keep in mind that if leasing your laundry equipment is an option for you, it’s possible that you may be able to finance your laundry equipment by getting an SBA loan, paying cash, utilizing your credit cards, or getting a loan from family. Lease your equipment with a local Equipment Distributor.
Financing Laundry Equipment
These days, it’s not uncommon for investors to finance their laundry equipment, especially if they already own a laundromat.
Thankfully, it’s easier for an existing laundromat operator to finance new laundromat equipment because they can show that their business is already turning a profit, while entrepreneurs who are just getting started will need to do a little more to qualify.
A new laundromat investor may need to show that they have a credit score of at least 640, and they must be able to come to come up with a down payment on the equipment. Most Equipment Funding Companies provide in-house financing with flexible programs, low rates, fast approvals, and support from industry experts.
Ultimately, your decision to lease vs. finance your laundry equipment is up to you. The most important thing to do regardless of if you finance or lease your equipment is to make sure that you will be paying a payment that you can afford monthly.
By Jeremy Raglin, Content Writer
Also see: Suppliers Directory, Equipment Financing Companies,