Recent content by Alan Bussey

Apex - It is fairly common for people who build express washes to have active partners and/or to have silent partners who own, say, 20% or less. If your partner(s) are in the business you may be able to get a wash built for about 15% cash equity, perhaps a bit lower. Typically conveyor washes...

Robert - No appraiser has been assigned, so at this time we cannot characterize his work ethic or intelligence level. There is a strategy here. Given the loan underwriting guidelines followed by the regulators and banks, when requesting formal loan approval it is best to reasonably assign as...

Chinese car wash parts. Don't the other car wash equipment manufacturers also use imported Chinese components such as pumps, air cylinders, hydraulic cylinders, valves, gear boxes, etc.?

Autobase A little more on Autobase - The first link is to the Autobase brochure for all of their car/vehicle washing equipment. The second one is for just the tunnel equipment. The tunnel equipment in place that we are evaluating is the mid-length model, the TP-901. It will take 5 - 10...

Hello, everybody. Merry Christmas to you! Recently an applicant asked me to finance his purchase of an existing car wash business that has an Autobase conveyor wash system. The conveyor appears to be about 60 to 65 feet long. It may be a model T-901. Emblems on two of the major arches say...

Full-Service General Manager Compensation Hello, folks - An owner group is working on a compensation formula for the General Manager who has very good experience running full-service car washes. The subject wash is a moderate (not bad) turnaround with mostly new modern equipment and signage...

Bill, I checked my Control Panel/Details. The e-mail address there is the same one where I receive all of my e-mails and have for more than 15 years. I capitalize the first letters of my first name, last name, and the first letters of the three words of my domain name, but the e-mail address...

Hello, everybody - An experienced owner/operator is looking for an auctioneer to auction a presently operating full-service conveyor car wash land, building, and equipment - everything - in the south central USA. (Fortunately it wasn't one of MY loans! :) ) While it might be helpful, this...

Well, Robert, perhaps I could have been clear that I am not suggesting a feasibility study / site assessment as a 'rubber stamp', but as a real, honest, addressing of the factors and a true hard-nosed analysis of the likelihood of success - not a gloss-over. The bank is likely to go along with...

DKitt - I think that the most difficult thing for lenders to understand is the 'need' for any specific type of wash in a given location. For example, a site that is good for a self-serve might be terrible for an express. So, if you can really establish the need for - the likely success of - a...

Scout - There is plenty of money available for car washes. There is every reason to apply for a car wash loan if you have a purchase or a new construction project in mind. The banks do seem to be more concerned these days that the applicant has a near-perfect credit history, so if it isn't...

Reds - Awesome. Thanks! Alan.

For you conveyor wash owners and operators - I have heard some conveyor car wash owners say that they try to keep cash in the bank that equals 3 months of expenses and loan payments. Some try to keep 6 months. How do YOU determine how much cash for operations (not for equipment replacements)...

Earl - You did answer the question about the reserve amount. We will make a list of the things that will need replacement or significant rebuild, set a likely date that those will need to be done, estimate the cost and then calculate a monthly deposit amount to get all of things paid for as...

Earl - Thank you. For a well-performing full-service conveyor wash with a larger decades-old building and older well-maintained equipment, what amount of money each month or quarter would be a sensible amount as a replacement reserve to be set aside? This would be a separate number from the...