Are you looking for a cash infusion for your dry cleaning business?
Then know that short term business finance options can help you!
Many short term business finance options can help you finance your dry cleaning business. Particularly, it’s one way of getting additional funds to pay rent, make payroll, acquire equipment for your operations.
But even if short term business finance can be a big help, you must use it properly for it to benefit your business.
Otherwise, you may even struggle paying it off later on. That’s often because you haven’t used it to boost your business’s profits or revenues.
With that said, you need to plan how you’re to make money with your newly acquired dry cleaning equipment. Doing this can help you get a good ROI on your short term business financing.
Luckily for you, we’re going to help you with that in this blog post. Today, I’ll talk about getting short term business finance and using it properly for a dry cleaning business.
Manage a Dry Cleaning Business with Short Term Business Finance
Before we talk more about short term business secured loan finance options, let’s discuss why you need to acquire dry cleaning equipment.
As with other businesses, you need to acquire (if you’re a startup) or replace (if you’re already running) equipment every now and then for a dry cleaning business.
After all, you need to make sure that your business will deliver the best possible service to its customers.
Using failing dry cleaning equipment will affect the quality of your operations. This could drive away even your loyal or repeat customers.
So to get the best results from your short term business finance, you need to know the necessary equipment for a modern, profitable dry cleaning business.
New dry cleaning equipment may allow you to charge higher than your competitors. This is possible only if you’re offering the best service in your area, of course.
Either way, let’s take a look at the equipment you need for a dry cleaning business. After that, we’ll talk about how to use short term business finance to get that equipment.
Necessary Equipment for a Dry Cleaning Business
As I said, if you want a successful dry cleaning business, you need certain pieces of equipment. They can help you provide quality service to your customers.
In particular, you’ll likely have to get the following equipment for your business:
Dry Cleaning Machine
The dry cleaning machine is fairly similar to a household washer. The only difference is this type of dry cleaning equipment can handle large load capacities and uses a different mechanism, as it “washes” clothes with chemicals.
When you buy a dry cleaning machine, make sure that it will fit your business and customer demands. Consider factors like its capacity, the length of cycles, and power consumption.
Dry cleaning machines are expensive. A typical dry cleaning machine could cost between $40,000 to $50,000.
With that cost, it’s best to use short term business finance to get this type of equipment at low interest rates. It can help you avoid financial problems even as you invest your own working capital into your business.
You need to acquire dryers if your dry cleaning machine doesn’t have a built-in dryer.
Dryers are essential to a dry cleaning business. They can help you prepare the clothes of your customers quickly.
A commercial dryer costs about $2,000 to $10,000. Not all of them are energy-efficient.
To save working capital, acquire a dryer with a moisture sensor. This type of dryer turns off the machine automatically when it reaches a certain temperature.
Also, try to acquire a dryer with good capacity. You will usually have to dry bulky items so you need a dryer that can accommodate those.
Pressing Machines and Steamers
Pressing machines and steamers are important too.
They act like a giant iron. They do the finishing touches on the dry-cleaned clothes.
The pressing machine and steamer remove the wrinkles on the garments so they will look new or presentable.
Acquiring pressing machines and steamers could cost around $2,000 to 8,000. If you’re to get a couple of these, it’s best to do it with short term business finance.
Other Necessary Dry Cleaning Equipment
Other than the equipment above, here are more pieces of equipment needed if you want to open a dry cleaning business:
- Sorting bins.
- Hangers, garment coverings & racks.
- Garment tags.
- Cleaning chemicals.
- Vacuum table & steam iron.
- Gas boiler.
- Hot water boiler.
- Chiller for hydrocarbon dry clean machine.
- Boiler blow down tank and return system.
- Air compressor.
- Washer extractor.
- Dry-cleaning pant topper.
- Dry-cleaning form finisher.
- Dry-cleaning triple puff.
- Dry-cleaning spotting board.
- Touch-up ironing board.
- Garment conveyor.
- 100′ slick rail.
You also need other equipment that is related to dry cleaning operations. For example, computers for your office, a phone system, and utility equipment.
Acquiring all of these will require a huge sum of working capital. If you have limited working capital available, you definitely need to use short term business finance.
Acquiring Dry Cleaning Equipment Using Short Term Business Finance
So why would you need short term business finance to get all this equipment? Let’s take a look at the costs, particularly for those starting a new business.
If you want to expand to a second or third location, you must prepare $200,000 to $1,000,000. The exact amount depends on several factors, like its size or location.
And as we’ve seen already, the equipment involved is expensive. You may need $50,000 to $450,000.
If you have limited working capital, spending that on equipment could mean huge financial headaches.
That’s why you should consider getting additional working capital, such as through short term business finance.
Short term business finance gives you funds that you can borrow and pay in a short period -- 6 to 12 months. To give you an idea, here are examples of short term business finance options:
- Business Term loans,
- Business Cash advance, and
- Business Lines of credit.
Having additional working capital loans will increase your buying power. It will allow you to acquire top-of-the-line equipment without risking financial problems and also avoiding long term loans.
It’s useful even for those who already have dry cleaning businesses because it can improve the quality of their operations. This can help them gain more customers.
Once that happens, they will have more profit. The business’s finances stay healthy even as it repays the business line of credit.
Take note that having additional funds also gives you an option to start a franchise dry cleaning business instead. This relieves you of the hassle of setting everything up yourself.
Just pick the right franchise to make sure that you will get a good ROI. To help you with that, here are some of the best dry cleaning franchises:
- Speed Queen Laundry.
- Martinizing Dry Cleaning.
- Comet Cleaners.
- Tide Dry Cleaners.
Either way, to make sure that you profit from the financing, you need to get short term business finance from the right lender.
Where to Get Short Term Business Finance
Getting a short term business loan from a bank is a good option. But it means a long application process, long term debt too and they will do a blanket UCC on your business, where as an online business finance company won't.
Other than that, there’s no assurance that you will get working capital loan approval from a local bank even if you submit all the necessary business loan documents.
Thus, it’s often best for small businesses owners to get working from business lenders like privately held online business finance companies.
Most online business lenders will give you great rates for short term business finance. Also, you may be offered different payment options so you can manage your finances properly.
Affordable monthly payments can help you have a healthy budget.
With some lenders, you can even arrange a payment option that will match your income. If you have a seasonal income, this will help you avoid cash flow problems.
Business lenders like Trust Capital offer a businesses a line of credit in 24 hours that businesses can pay back at anytime and only pay the remaining principal balance back.
Unlike your local bank loan. The requirements are very easy. Businesses only have at least 6 months time in business, a minimum FICO score of a 620, and be depositing at least $25,000 a month into your business checking account. If you meet these requirement's you can qualify for up to 75% of your average monthly revenues. The business line of credit is the most affordable type of short term business financing.
If you’re qualified, you’ll access a line of trade credit from which you can pull working capital from at anytime. You can repay the business line of credit from 3 to 12 months in monthly installments. Again you only pay interest rates on the outstanding balance and can pay it down and can pay it early and only pay the remaining principal left on the line of credit for your business.
You just need to make sure that you can present the required documents. Which is as simple as a one page applicationthat only takes a few minutes and submit three months business bank statements to show annual revenues. Also, be sure that you have a concrete plan of how you’re going to use the short term business financing options.
The best thing of it all is a business can have cash in your business account receivables the same day you're approved if you wish. Everything is Fintech and online.
Final Thoughts on Short Term Business Finance
In this blog post, we talked about short term business finance for a dry cleaning business.
You need to make sure that your equipment can deliver the best service possible. This is the best way to ensure that your dry cleaning business will be successful.
However, acquiring all the necessary equipment requires a huge sum of money. Even if you have enough working capital to cover it, you will likely still need more business funds to avoid financial headaches.
You have different finance options for that, but getting short term business finance is one of the best if you're in need of working capital fast.
To know more about short term business finance solutions, contact Trust Capital at (866) 458-4777.