The Need for Funding for a New Location

While things were going well at the current location, the car wash owners realized they were missing out on opportunities in other parts of the city. So they put their heads together and considered their options. They could stick with what they were doing or take a risk and see if they could grow larger. In the end, they decided to go for it. It was a great option to get into a lucrative market, and it wasn’t likely to add much work to their existing responsibilities.



How Much Financing is Enough?

Overall, the owners would need around $600,000. Fortunately, they had half of that available in savings from the current business. Still, financing $300,000 isn’t always the most straightforward process. The owners knew that they needed to consider all their options before moving forward to ensure the success of the new car wash.


Selecting an SBA 7(A) Loan

Before going forward with any financing, the owners decided to look into all the loan options available. They considered traditional loans as well as any SBA loans they would be eligible for. However, most of the conventional loans had higher interest rates or other issues that made them less appealing. In the end, the SBA 7(a) loan was what the friends chose. A 7(a) loan is often used to fund working capital, equipment and supplies purchases, business expansions, and real estate.



Why Choose this Specific Financing Option

There were a lot of reasons that the owners decided to choose an SBA loan. However, when it came down to it, it was a matter of the loan being the right amount, with a low-interest rate and a reasonable payback term. Also, they had a great accountant that would be able to help with all of the required documentation.

The State of the Company Since

It took some time for the owners to start the new car wash, but it happened thanks to the SBA loan they chose. Since then, the car wash has been completed and more revenue is coming in every day.

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