How Much Money do I Need?

When investing in any business, funding is always a concern
and owning a laundromat is no different. How much money you will need to come up with, will come down to a couple of things.

Where are you getting your business loan? Alliance Laundry
Systems requires their customers to invest as little as 30
percent in cash into the total cost of the store, including the equipment and leasehold improvements. In comparison, banks may require additional collateral including personal real estate and will probably not take into consideration the equipment value as a part of the loan.

How much will the initial investment need to be? The amount of your down payment will be determined by the size of the store, cost to build, cost to buy, equipment costs, etc. On average, a new laundry can be a total investment of anywhere from $250,000 to $750,000. Most entrepreneurs investing in Speed Queen stores, will invest between $75,000 and $225,000, and will finance the balance, giving them good leverage on their cash.

Where to Establish Funding

When first deciding on where to get funding, there are a couple of places to look for help. A good place to start is with the equipment manufacturer. Alliance Laundry Systems offers a selection of financing programs ranging from first time investors to multiple store owners.

Another reliable source is the Small Business Administration. The Small Business Administration offers a wide variety of different loan programs including a micro-loan of $100,000 or less. To find out more about the SBA loan programs available, go to their web site at www.sba.gov or contact them at (800) 827-5722.

No matter if you go to your local bank, the equipment manufacturer, or the S.B.A. for financing, you will more than likely need a business plan. If you aren’t sure how to draft a complete business plan, your local equipment distributor or local Senior Core of Retired Executives (S.C.O.R.E.) is a great place to start.