Laundry business loans
If you’ve opened a laundrette or laundry business, or you’re thinking of starting one, you might be wondering what kind of finance you can secure to grow your business. Keep reading to learn more.
- Compare a wide range of lenders and rates
- Check your eligibility in minutes
- Find out how much you could borrow
It's fast, free and won't affect your credit score
- Why is the laundry business thriving?
- How much does it cost to open a laundry business?
- What equipment do I need for my laundry business?
- Laundry business loan options
- How to apply for a laundry business loan
Checking won’t affect your credit score
With around 5,000 laundry businesses in the UK, it’s still a thriving industry. But getting started can be expensive, with one of the biggest expenses being rent, with retail spaces reaching £49.64 per square foot each year in London. And the equipment you need isn’t cheap, either. Commercial-grade washing machines cost in the region of £2,600 each.
If you don’t have the personal funds to bankroll your new venture, don’t worry, there are plenty of business loan options available.
Why is the laundry business thriving?
Consumer habits are changing. People are working longer hours, they’re renting spaces without clothes washing and drying machines, and disposable income is increasing (growing 1.7% per person at the end of 2024).
On top of all that, technology is making laundry services quicker and more simplistic, with app delivery services and integrated digital payments (instead of coin-operated washing machines), it’s never been easier for the modern consumer to take advantage of these kinds of services.
How much does it cost to open a laundry business?
How much it costs is heavily dependent on the type of laundry business you open. For example, you might be considering opening a full service laundromat where you wash and dry the customers’ clothes, or a self-service laundromat where the customer simply uses your equipment, or, you might want to move entirely away from having your own premises to keep costs lower and offer a washing, drying and folding service that you run out of your own home.
Other factors that affect the cost of your business are whether you choose to buy, rent, or buy into a franchise, and your location. Then you have to factor in the cost of the equipment (commercial washing and drying machines, chemicals, laundry carts), the cost of business insurance, staff (and all associated costs like pensions, holiday pay, maternity leave). You’ll also have initial and ongoing renovation costs to budget for.
What equipment do I need for my laundry business?
- Laundry carts. If you’re operating a full-service laundromat, you’ll need carts to separate items, including whites, bright and dark colours, etc.
- Commercial washers and tumble dryers. Especially if you’re offering a self-serve laundry service, you’ll need washers and dryers that are new and efficient. Not just for energy-saving purposes, but because customers have expectations you need to meet.
- Chemicals and cleaners. You’ll need to stock up on detergent, fabric softeners, stain removers and more.
- Electronic payment systems. To appeal to the modern consumer, you might want to consider easier electronic payment systems rather than the traditional coin-operated machines.
- Furniture. Furniture is a particular necessity if you’re offering a self-serve laundromat, as people will wait for their clothes to wash and dry.
- Folding tables and ironing boards. You might want to consider these items if you’re offering an at-home laundry service and a full-service laundromat.
Checking won’t affect your credit score
Laundry business loan options
If you’re looking for business finance to help grow your laundrette or laundry business, whether that’s to start the business or to finance laundry equipment, there are plenty of options to consider.
Business line of credit
A business line of credit is very similar to a credit card in that it’s a revolving credit facility. Meaning once you draw down the funds and repay, the money is there to spend again. This is a great option for laundry businesses that aren’t sure how much they need. With a line of credit, you only pay interest on the funds you use — borrow what you need, as and when you need it, and repay.
Merchant cash advance
If you need funds quickly to repair or replace broken washing machines or tumble dryers, then a merchant cash advance could be a good option, as they can be quicker than traditional loans.
If you take card payments in your laundry, you could be eligible for a cash advance. A cash advance is a flexible loan type where repayments fluctuate with your card payment revenue. Repaid as a percentage, if you have a slow sales month, you repay less, making it an attractive finance option for many newer businesses (as long as your laundry has been trading for at least three months).
Startup loans
You might find it more challenging to find traditional lenders that will lend to businesses without a trading history for your laundrette. But alternative lenders are more flexible with their eligibility criteria. There are plenty of startup loans available for UK SMEs, ranging from smaller loan amounts like £500 to in excess of £2 million. Getting a quote through the Capalona platform won’t affect your credit score. Compare startup loans.
Invoice financing
Invoice finance is a great way to unlock cash tied up in unpaid invoices. It keeps cash flow healthy, and expenses become easier to manage. You can sell one or multiple invoices to the invoice financing company and get cash in your account within a matter of hours. Perhaps you need to hire last-minute staff to cover busy periods, or your laundromat's electricity and water costs are higher than expected. Invoice finance can help you plug those short-term financial gaps and keep your operations running smoothly.
Equipment financing
Laundry equipment financing is a great way to purchase or lease top-of-the-range equipment you need for your laundry to function. Use this type of finance to lease brand-new washing machines for a monthly fee, and when you finish your lease, you can give it back, buy it outright or upgrade it. Equipment financing means you never have to worry about depleting your cash reserves purchasing equipment upfront ever again.
How to apply for a laundry business loan
Applying for a laundry business loan is quick and simple. To find the most competitive rates and best loan options, you can find and compare multiple lenders through our free comparison platform. From there, you can click through to continue with your application online with our trusted UK lenders.
Our self-serve platform lets you compare total repayable, interest rates, monthly repayments, and more.
Find and compare business loans for your laundry business.
About the author
Adrian T
5/5
Amazingly fast, efficient service, minimal paperwork. So much faster than my business bank of twelve years.
FAQs
0330 223 5036