Dry Cleaning Equipment Financing
“Do You Need To Finance New Or Used Dry Cleaning Equipment?”
Dry Cleaning Equipment financing can be arranged through an equipment loan or equipment lease.
For going concern businesses that are earning a profit on an annual basis, there will be a greater appetite on the part of lenders or leasing companies to finance this type of asset. For new businesses or relatively new businesses where there isn’t yet much of an established track record of operational perform capable of servicing debt, the financing amounts available will typically be under $100,000 and will require good credit and strong personal guarantees from the principal owners of the business.
Used dry cleaning equipment can also be financed, but again the focus of the equipment financing company is going to be on the strength of the cash flow of the applicant company. Used equipment will not hold as high a security value as new equipment, so there will automatically be a greater focus on the cash flow and the credit profile.
In some situations where multiple pieces of equipment are required, it may be possible to spread the financing over multiple lenders or leasing companies in order to generate enough borrowing power. For amounts under $25,000, the risk assessment requirements are much similar and most lenders may be more comfortable only holding some of the debt versus all of the financing required for all the different dry cleaning assets you may be trying to finance.
To secure commercial equipment financing from a bank, the credit profile is going to need to be strong as well as the guarantor profile. Equipment leasing companies collectively cover a much broad spectrum of credit than what you will see from a bank or institutional lender.
Get Dry Cleaning Equipment Financing That Meets Your Needs
Dry cleaning equipment financing from a leasing company will not only cover a variety of credit profiles and states of business development, but the applicant may also have some flexibility securing an operating or capital lease, depending on the businesses tax situation and cash flow requirements. In order to best understand the type of equipment leasing structure that may be the most appropriate for you business, you may want to consult with your accountant and/or your taxation adviser.
If you’ve identified dry cleaning equipment you need to finance right now or are just starting the acquisition process, please give us a call so we can get all your questions answered and provide dry cleaning equipment financing options for your consideration.