A Car wash loan can help you start a car washing business. In essence, you would be looking for a small business loan. You can choose from a number of government loans, private loans or a combination of both.
Making a Plan
Before you set out to get a loan, you need to be able to how much you need and what exactly you will be using it for. This can be broken down into three categories:
- Operations – the day-to-day expenses necessary to run you car wash. This includes paying your employees, training them, marketing your car wash, etc
- Assets – things that you need in order to be able to run your car wash. This includes the land your car wash stand on, the car wash building and any attached facilities it may have, car washing equipment and cleaning supplies.
- Outstanding debts – if you have any business debts, you may be able to use a small business loan to pay it off.
Items you will Need
You will need to look at all those costs and figure out exactly how much money you would need. You will also need to be able to present the following:
- Business Plan – shows exactly how you plan to spend the loan money and how you will be able to pay it back.
- Credentials – anything that can show that you have experience and skills necessary to make your car wash successful. The lender will also check your credit history.
Finding a Loan
To apply for a loan, you can either turn to a private lender or the Small Business Administration (SBA). While private business insurance policies have less restrictions and offer more money, SBA insurance policies benefit from being federally backed, which makes them more stable. Furthermore, SBA’s CDC/504 loan program is designed to benefit the minorities and members of other disadvantaged social groups that the private insurers are more likely to reject
Some important items to know to finance your are:
- How much money do you really need?
- Do you know your exact FICO scores?
- How do you plan to repay the loan?
- Who is going to borrow the money? You personally or another legal entity?
- What assets can you pledge to secure your loan?
Make sure you know you are pre-qualified before you apply. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.