Merchant Cash Advance Laundromat Cleans Up Its Finances
Author: Valerie Mellema
Date posted: 09.28.22

People find inspiration in businesses of all kinds – even laundromats. When a midwestern entrepreneur ran across one for sale in a town nearby, he decided to buy. He envisioned a hip space that was more than somewhere to get clothes clean. Adding in a jukebox, snacks, and personal laundry service seemed like a great way to take laundry from boring to captivating. He financed the business with the help of partners and took control of the building and its equipment. It was set to be a smooth launch.

A Hiccup in the Plans to Open

On the brink of opening, it turned out that more financing would be needed. The project was over budget for all the amenities and machines that needed to be installed. There was a need to find a solution fast. While the operation started, things were extremely tight and the place wasn’t as full-featured as the owner hoped.

 

That’s why about 6 months or so after opening, the owner decided to see whether financing was available. It was that or live with the fact that the laundromat would never reach the level of excitement it had in this original vision.

 

How Much Money Was Needed?

After doing the math and taking a look at what would be needed to spruce the place up further, the owner came up with a figure of about $150,000. While business was going well due to everyone being interested in a new laundromat, the owner knew things could only get better. However, that would take the right kind of financing.

 

Having this amount could allow for extra updates and repairs while having extra to keep things going well as long as the financing was needed. It would give the owner a chance to see his dream come into reality and see how business could be in a best-case scenario.

Choosing the Right Financing Option

As with any small business, there were many options for financing. However, the main focus, in this case, was getting the money fast and not having huge payments if the business didn’t stay steady. Those requirements quickly narrowed down the possibilities until only a merchant cash advance was seen as a good fit.

 

This financing option would let the owner finish the updates to the laundromat quickly. Then the money would be paid back based on the level of business every day. If things were slow, a smaller payment would go in. If it was busy, more of the merchant cash advance would be paid off.

 

Reasons to Choose a Merchant Cash Advance

As a newly bought laundromat with a need for repairs and updates, a merchant cash advance just made sense. This loan is an alternative form of financing. The business is giving a sum of money that is repaid using a percentage of credit and debit card sales. It’s the perfect option for small businesses that need quick cash.

 

Since this is an upscale laundromat, it goes beyond coins in machines. These many services are paid using credit and debit so this advance made the most sense. The owner could easily pay back the loan over time while making changes at the moment.

What Happened in the End?

Since getting the merchant cash advance, the laundromat has had repairs and updates. It’s become an important part of the midwestern town it resides in. Payments go through every day through the terms of the financing so not too much is ever taken out in a day.

 

Nowadays, the owners are doing great business. The music, snacks, and other amenities have turned the laundromat into something to be proud of. The owners are talking about the possibility of opening a new location in the years to come.

About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

What’s New

All Resources
All Resources