Laundry equipment finance offers businesses a way to access essential laundry machinery without the burden of large upfront costs. It’s especially beneficial for operations like laundromats, dry cleaners, hotels, and healthcare facilities that rely on high-volume laundry services. By spreading the cost over time, these financial solutions help preserve cash flow while ensuring businesses can maintain efficient and reliable laundry operations
Key Types of Laundry Equipment Finance
Rental / Operating Lease
Ideal for cleaning equipment that may need frequent upgrades due to wear and tear or technological advancements. The lessor retains ownership, and the lessee pays a rental fee. This is the most flexible finance facility and at the end of the lease term, the business can purchase the equipment, return the equipment, renew the lease, or upgrade to newer models.
Finance Lease
The lessee makes regular instalments with a residual value based on ATO guidelines due as the final payment. The lessee has the option to purchase the equipment at the end of the lease term by paying the residual value.
Chattel Mortgage
In a Chattel Mortgage agreement, the business pays off the equipment in instalments. There is an option to take a balloon at the end of term which will help lower the regular monthly payments. Ownership transfers to the business after the final payment.
Vendor Financing
Some manufacturers or distributors of cleaning equipment offer financing options directly or through partnerships with FInance@work. These programs often feature competitive rates and terms tailored to the specific equipment being purchased.
Managed Services
Instead of purchasing, businesses can opt for a subscription-based model where they pay a recurring fee for access to cleaning machines, software, and support services. This model helps avoid large upfront costs and ensures access to the latest cleaning technology.
Benefits of Financing Laundry Equipment
- Cash Flow Management: Financing spreads out the cost, preserving cash flow for other business needs.
- Up-to-Date Equipment: Businesses can afford the latest equipment, improving efficiency and service quality.
- Tax Advantages: Lease payments and loan interest can often be deducted as business expenses.
- Flexibility: Various financing options allow businesses to choose terms that best fit their financial situation.
Considerations
- Interest Rates and Fees: Compare the total cost of different financing options, including interest rates and any additional fees.
- Credit Requirements: Ensure your business meets the credit criteria for the chosen financing option.
- Term Length: Choose a term length that balances monthly payments with the total cost of financing.
By carefully considering these factors and exploring different financing options, businesses can effectively acquire the necessary laundry equipment while maintaining financial health.
List types of laundry equipment
- Commercial Washers (Front-load, Top-load, and High-efficiency)
- Commercial Dryers (Gas, Electric, or Stackable Units)
- Washer-Extractor Machines
- Tumble Dryers
- Flatwork Ironers
- Steam Presses
- Dry Cleaning Machines
- Towel Folders
- Sheet Folders
- Garment Finishers
- Laundry Carts and Trolleys
- Detergent Dispensers and Chemical Injection Systems
- Folding Tables and Workstations
- Laundry Management Software Systems
- Ozone Laundry Systems
- Boiler and Hot Water Systems for Laundry
- Lint Collection Systems
- Stain Removal Stations
- Industrial Irons and Pressing Equipment