Car Wash Loans

[Waxman]

I'll go even further and state that a potential carwash investor should be more than capable of creating on their own; pro formas for 3 years, market research, and a marketing/advertising plan for the business.

They should know the industry, at least somewhat. Maybe have a job at a carwash first to gain practical experience. Show good credit perhaps in a separate business venture. Have a relationship established themselves with banks or a banker.

Is a broker going to hold your hand while you're repairing machinery, plowing snow or determining which bills to pay on a slow month at the finished/financed carwash?

 

[Alan Bussey]

Robert -

An experienced car wash loan broker goes far beyond just filling out forms. There are complex issues, particularly with SBA loans, that are wisely addressed as early in the process as possible.

A car wash loan broker who has a long-standing relationship with the lender, if truly working on the car wash loan applicant's behalf, often can negotiate better terms than the applicant can get on their own. This is partly because the lender knows that the broker can easily move the application to a different lender with whom he has a relationship and whom he knows is receptive to car wash loans. And the broker can often get better terms simply becasue he knows just what terms that the lender can REALLY offer.


Waxman -

No banker will hold your hand while your repairing machinery or plow snow either!

Gotta get back to work, guys!

 

[Ghetto Wash]

Alan,

don't mean to diss you, but I need to say my peace. I have never heard anything but positive about you and years ago talked to you about a new loan. I have never actually used you, but am sure you do a great job. On my deal, I don't know if all are the same, you wanted a non refundable packaging fee wheather or not the loan ever actually got approved with a bank. I wasn't comortable with that so I have always gone to the bank directly. They don't charge me anything if they don't approve the loan.

As far as the costs that were being discussed between a broker and a bank directly, in my experience with both national banks and small regional ones, the bank doesn't lower the costs to me to deal with them directly. The end cost to me is the same. The bank pays the broker out of their proceeds and if there was no broker they keep it to help offset their internal loan origination costs.