How can I finance a laundromat purchase with little cash of my own?

Many buyers use more than savings. The usual answer is a mix of sources, each with its own conditions. Before you approach anyone, work out what you can put in yourself and how you would repay the rest from the store’s income. The options below are the ones buyers most often discuss, and they can be combined.

Seller’s note and existing leases

A seller’s note means the seller accepts part of the price over time. Some sellers agree to this when they want the sale to close and trust the store to carry the payments. Taking over existing equipment leases is another route, though the lessor may need to approve the transfer, so ask your lawyer to read both before you agree, and see what to weigh before offering vendor financing for the seller’s side.

A term loan, a partner, or a smaller store

A bank or another lender may offer a business purchase or equipment loan. Expect to bring a plan, your personal financial information, and the store’s records. A partner or investor can share the cost, but you will share decisions and returns. Whatever the store’s size or age, ask what repairs it may need.

What a lender will want to see

• Several years of the store’s financial statements and tax returns.
• A clear list of machines, their age and who owns them.
• The lease, including how long it runs and whether it renews.
• Your own experience, credit history and plan for running the store.