Keeping It Clean
Term Loan Keeping It Clean
Author: Stephanie Clarke
Date posted: 04.19.23

In high school and college, Mark worked part-time at a lucrative car washing business. On graduation from university, he opened his first car washing business in his hometown, a busy metropolitan area. His company offered interior cleaning, a specialized automatic exterior wash and wax, as well as hand wipe down and detailing for each customer. Customers choose the level of service and part of the appeal is that the company records customer preferences for a more personalized experience. Recently business has been so good, Mark wants to add an additional automatic exterior wash and wax bay to meet customer demand. The expansion will require additional cash fast to ensure operations continue smoothly and customers remain satisfied.

The expense for another bay is substantial. However, Mark believes that by securing appropriate financing and benefiting from his continuously growing customer base, he can swiftly settle the loan. This is because he’s essentially going to double his car washing capacity, which will require hiring more staff. Given his outstanding community reputation for delivering top-notch services at affordable prices, Mark starts determining the cost for adding the new bay. Fortunately, the property he bought for his initial business provides enough room to accommodate the extra bay.

Keeping It Clean

Mark evaluated several specialty automated car wash and wax bays. Eventually, he found the perfect choice, priced at $465,000. With his criteria defined, he began the journey to find a lender who could provide favorable terms and a reasonable interest rate.

As his business had grown rapidly, Mark possessed an impressive credit score, a well-established credit history, and meticulously organized financial records that covered each year of operation.

He anticipated high demand from individual customers and local dealerships in need of top-tier car wash services. To meet this demand, he aimed for a term loan lasting less than a decade. His confidence in swift repayment fueled this decision.

Mark connected with a lender who proposed an eight-year term for the $465,000. This duration not only aligned with his plan for early repayment but also granted him flexibility if unforeseen challenges arose.

Having secured the loan, Mark not only oversaw the bay’s purchase negotiation but also coordinated its installation over six months. Remarkably, he maintained operations in both the new and existing bays throughout construction.

As Mark had foreseen, his business almost doubled within six months. Impressively, he succeeded in repaying the term loan a year earlier than expected, completing it in seven years.

Keeping It Clean
About The Author | Stephanie Clarke

Stephanie has a bachelor's degree in psychology and has been a professional writer for over 15 years. Her client list includes New York Times bestselling authors, publishing houses, prominent public figures and successful business owners. She resides with her family in Florida.

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