Car Wash Financing

Specifications

Typical Loan used: SBA 7a – (includes real estate, building, equipment, closing costs, construction interest, & working capital) Max Amount of Loan: $5,000,000.00 (Typical car wash loans range from $2 M to $4 M.) Length of Loan: Typically, 25 years. Down Payment: 20% to 25% of the total project amount. How Funds are used: Available for Ground Up Construction or Improvements to Existing Car Wash Location acquisition of car wash business and real estate. Do I qualify for a loan: Contact the Experts at Gateway Capital Funding. Cost of loan: Depends on the amount borrowed.

Comments about SBA loans:

1. Funds are provided by a bank; SBA guarantees the bank payment if a default occurs. 2. Yes, SBA loans are complicated and time-consuming, unless you are working with Gateway Capital Funding, their staff is very experienced and knowledgeable regarding the loan process and will expedite the loan process. 3. Banks had over $800 billion dollars in outstanding SBA loans in 2019 simply because SBA guaranteed part of the loan. The staggering numbers show the popularity of SBA loans to small businesses. The above are general comments and may vary depending on some borrowers’ needs and financial ability to repay the loan. Staying on top of new trends and changing technology can make your car wash more profitable but planning an upgrade can be daunting. It seems like new options for upgrades become available each day, and many car wash owners don’t know where to begin. Updating tunnel equipment offers a number of advantages, such as increased energy efficiency and more effective use of chemicals. When properly implemented, new equipment will also increase throughput and improve wash results. If you’re not sure if it’s time for an upgrade, ask yourself these questions:

• Is your current equipment running efficiently?
• Does your current equipment accommodate customer volume in a timely manner?
• Do you often find that your equipment needs repair?
• Does your equipment provide the latest in technology thus reducing labor and utility costs?

Does your car wash reflect today’s architectural appearance compared to other businesses, if not, it’s time for a makeover! If you answered “Yes” to any of these questions, it may be time to consider an upgrade. Do Your Homework Equipment is a primary component in your car wash, however and equally important is the car wash equipment distributor. Before investing in an upgrade, it’s important to thoroughly research and meet with your local car wash equipment distributor, the distributor is a critical part of any car wash project and the costs associated with a package such as price of equipment, installation, warranty is a major cost and is a large component of one’s loan. In addition to cost, equipment quality and efficiency will impact your gross margins, don’t fall prey to inexpensive equipment, some equipment will have higher depreciation costs, while some will be less efficient than others, consider variable costs, including electricity, natural gas usage, water, chemical detergents. All these factors contribute to operating costs and your ROI, be sure to factor in repair and maintenance costs for the short-term annual replacement cost of parts and finally the long-term depreciation costs based on the life of the equipment. Finding a lending source partner, you can bank on. It all begins with a lending source who is a Car Wash Expert through personal experience, that completely understands the Car Wash Industry. Your ideal partner will be experienced in the unique seasonal needs of the car wash industry. The lending source you select must understand the steps involved in equipment upgrade financing. This might include the loan approval cycle, documentation requirements, underwriting, and environmental studies. If your lending source is inexperienced and fails to follow through on even the most minor detail, closing the loan may take six months or more and jeopardize your project. Selecting the right lending source will shorten the process to close the loan, in a much shorter time, compared to inexperienced lenders. The ideal lending source will be experienced in car wash equipment financing, with a substantial track record of success. They will streamline the process from approval to closing while holding you accountable to provide the required documentation in a timely manner. Choose wisely, and your new car wash project or equipment upgrade can be a positive experience for you.
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