Wash Financing

[cincycarwash]

Anyone have any lenders they like, and that deal with car washes? Have a struggle with some local ones that don’t understand the business and push back on weird things.

 

[Keno]

Is this for ss or tunnel? And do you have any car wash ownership experience?

 

[cincycarwash]

Is this for ss or tunnel? And do you have any car wash ownership experience?

Self serve. Yes I own two currently.

 

[mcwashes]

I'm currently speaking with a handful of equipment finance people and local lenders. Would love to know who you end up working with. Ascentium is one and since you own several washes they would work with you. as a new operator, they won't work with me. Hard money rates so not ideal for cash flow. Another one, I'll have to find the name, is 100% finance on equipment and 80% for land. 7 year term (waiting to see if the land is amortized longer) 7.5-8.9%. 1 page loan app and financed in 1-2 weeks. Again, with the short term, the payments are pretty high and cash flow is tight so not my favorite option.

 

[Roz]

I have heard of a few recent deals where owner finances the deal for up to three years and then a balloon payment is made as the buyer usually has enough money and data to get a 15-30 year loan.

 

[Keno]

Self serve. Yes I own two currently.

you should in theory have a better chance of getting a loan since you are experienced, but lenders are getting tight on lending, and they come up with garbage requirments instead of denying the loan. Saw it at the last down turn too.