Do Not Leave Your Car Wash Loans To Those Who
Do Not Know The Industry. Car Wash Financing Is Not For The Faint Of Heart!
Car wash loans are a different ball of wax than gas station loans. If
you're looking for car wash financing, believe it or not many lenders like doing car wash business loans and NOT
gas station loans. And some lenders like doing gas station loans and not car wash business financing!
As a car wash is a special purpose facility , in the case of default the value of car wash will
go down quicker than other types of commercial properties such as a multi-family or an office building. This is one
reason many lenders steer clear from doing car wash financing.
As you can imagine, car wash success or failure can really depend on the weather in an area
also. If you have an area that has an unusually rainy season, logically revenues will go down. Weather does not
impact other types of businesses nearly as much as it will a car wash. This is another reason why many lenders do
not like to do car wash loans.
The loan options for car wash loans are the same as other owner operated businesses:
This can accommodate car wash purchase loans, car wash refinances, and
car wash ground-up construction loans and improvements.
The advantages of SBA loans are even more evident with car wash loans because of the high
percentage of equipment being part of the collateral. It would not be uncommon for half of the loan proceeds to be
towards the equipment portion.
It all comes down to the amortization of the loan. While you may get a more favorable interest
rate with conventional financing and origination costs might be a little less, you will frequently find that you
will have a higher payment, many times significantly higher, because of how the loan is amortized for the
equipment. Many times you will see that on a conventional loan, the bank may only go seven or ten years for the
equipment. Some SBA lenders will fully amortize car wash loans for 25 years. In this scenario, you would realize
significant savings. SBA loans usually will offer a higher advance or Loan-To-Value.
The good thing about any type of loan is that your calculator will never lie to you.
Financing is not the same for all types of car washes either. Some lenders like full service
tunnel washes, others do not. Some do not like self-serve car washes because many underreport their earnings. Some
like automatic car washes, some do not.
The bottom line is, deal with people and companies that know the car wash industry and have done
a lot of carwash loans.
Watch A Few Of Our Videos For The Most
Frequently Asked Questions
How To Pre-Qualify How To Apply Why Are Loans Declined? How Long Will It Take?
Do You Do Const. Loans? Are You A Direct Lender? To Franchise Or Not How Do You Get Paid?
Is SBA Right For You? Do You Charge Upfront? Do You Pull Credit? How Many Sources?
Seller Seconds Allowed? Need An Environmental? Private Financing? How Fast Are Appraisals?