LAUNDROMAT FINANCING: Three Things to Know Before Opening Another Store
You built one successful laundromat. You know your machines, your regulars, your slow days and when to prepare for the weekly rush. Now you’re thinking about another location.
When it comes to laundromat equipment financing, lenders look at a second or third location differently than the first one. Your current store’s revenue, utility costs and day-to-day numbers are already doing the talking, before anyone asks you for a laundromat business plan built on guesses. And that conversation looks different than the one you had the first time around.
1. How Laundromat Financing Changes the Second Time Around
A first-time laundromat loan relies mostly on a good business plan. A second-location application rests on results, your existing store’s revenue, expenses and operating history. That track record gives a financing partner something concrete to evaluate, and it can move the conversation faster than a startup loan.
Mark Hickey built two Spin City Laundromats in Memphis and turned to Huebsch® Financial when it was time to fund new equipment. He said his financial manager’s experience in the laundry industry made the difference and a general bank couldn’t put together the same kind of plan.
Every application runs through a single one-page online credit application. Once you’re pre-qualified, a dedicated financial manager builds your plan around your store and equipment needs, not a generic lending formula.
2. What To Bring to a Laundromat Financing Conversation
Before you even apply, your existing store’s numbers are doing the heavy work for you. Gather these before your first meeting with a lender or financial manager:
- Utility costs
- Machine utilization
- Seasonal revenue patterns
- Day-to-day cash flow and performance
These all show a lender what a business plan may not be able to do: that you already know how to run this kind of business, and that you’re doing it well.
Scott Abraham runs two Texas laundromats: Northside Coin Laundry, a 3,750-square-foot store in a strip mall, and Saginaw Laundry Center, a 4,800-square-foot standalone building he opened two years after Northside.
He uses Huebsch Command to check each store’s weekly numbers remotely, from his phone. When Saginaw’s utility bill runs about half of Northside’s, he can point to exactly why. That kind of detail can provide strong proof points for a lender to approve your application.
Manufacturer financing isn’t the only route. The SBA’s 7(a) loan program, one path laundromat operators explore alongside it, can fund equipment purchases, working capital and other business needs. Eligibility depends in part on credit history and demonstrated ability to repay, per SBA.gov. Whichever route you take, a bank, the SBA or a program like Huebsch Financial, your current store’s numbers are part of the case before you submit anything.
Common Phasing Mistakes to Avoid When Scaling Your Laundromat Business
Growing a laundromat business from one store to two rarely goes wrong because of the location.
Instead, it usually comes down to the timing, stabilizing the first store, lining up equipment lead times and not splitting one financing package across two builds. That’s a deep enough topic to earn its own article. The short version here is that a lender will want to see the first store settled before betting on the second.
3. What to Ask When Applying for Commercial Laundromat Equipment Financing
Before you start the paperwork on a second or third store, bring these four questions to the conversation.
1. What loan term fits the size of this equipment purchase?
2. What does the pre-qualification process look like, and what credit profile does it require?
3. Are there current equipment rebates or promotions worth timing around?
4. Does the financing partner understand laundry specifically, or are you starting from zero on education?
A dedicated financial manager can walk through your commercial laundromat questions against your specific numbers and help you build a realistic expansion plan. Question four is the one worth pressing on. If a lender can’t speak to utility patterns, machine turnover or seasonal cash flow without you having to explain the industry to them first, that’s worth knowing before you sign anything.
Common Laundromat Financing Questions
How is a second laundromat’s financing different from financing my first store?
A lender can review your current store’s actual revenue and expenses instead of relying only on projections, which often moves the application along faster than a first-time loan.
Can I use my current store’s performance to qualify for expansion financing?
Yes. Revenue trends, utility costs and machine utilization from your existing location are part of what a financing partner reviews alongside your plans for the new store.
Do I need a security deposit to finance new commercial laundromat equipment for a second location?
Huebsch equipment financing programs are structured without a security deposit requirement. Confirm current terms with your financial manager, since program details can change.
How long does it take to get a laundromat financing decision?
Timelines vary by lender and loan size, but the process generally starts with a single one-page online credit application and a pre-qualification step, designed to move faster than a traditional bank application.
What’s the most common mistake multi-store operators make when scaling?
The most common mistake is stretching one financing package across two builds at the same time, instead of stabilizing the first store before starting the second.
Talk to Huebsch about expansion. Bring your current store’s numbers and get a financing plan built around your stores, your equipment needs and your timeline, not a generic lending formula.
All offers are subject to credit approval and underwriting. Rates and terms may vary based on the applicant's creditworthiness, time in business and financial strength. This financing is available for business and commercial purposes only, not for personal, family or household use. Huebsch does not provide legal, tax or accounting advice.
