Whether you are starting a new laundromat, expanding an existing one or retooling your OPL operation, adding equipment is always a top budget concern.
Unless you have cash to pay up front, finding the right kind of financing is critical to making sure your business is profitable. Interest rates are rising, so understanding how to best finance your equipment will help you lock in the best rate. Three options our clients have found successful are financing, leasing and contracting with a route operator such as Yankee Equipment Systems.
Going through a bank or established finance company for a commercial loan allows you to take out a credited term loan for the equipment and make monthly payments out of your cash flow. At the end of the term, you own the equipment.
A similar option to financing is leasing, which allows you to contract into monthly payments without dipping into your credit line. Unlike financing, you won’t own the equipment at the end of a lease, but you will have the option to upgrade equipment with another lease.
Route operators can place vended commercial laundry equipment in multiple locations, including apartment buildings and university housing. The property owner is responsible for the utilities, while the route operator maintains the equipment and collects the proceeds. The money is split between the two.
The advantage of contracting with a route operator is knowing the equipment is being cared for without the need for attendants or frequent check-ins.
We work with clients to find the best options to suit their financing needs. Two of our finance and leasing partners are Alliance Financing and Eastern Funding. Alliance Financing offers leasing and term loans for equipment and machinery, while Eastern Funding provides term loans for on-premise, industrial and vended laundry, in addition to funding routed machines and equipment.
Our sales team will help guide you through the process to make sure you have the financing option that best suits your business.