Laundromat Resource › Forums › Laundromats › Do you borrow six months’ operating costs when you buy a laundromat? › Reply To: Do you borrow six months’ operating costs when you buy a laundromat?
Good question, I’ve been thinking about this lately too and I’d like to know what people who actively own laundromats would say. I imagine that every laundromat is different due to a variety of factors including the lease agreement, equipment reliability, employees, etc. I’m sure that the difference in consistent revenue between a brand new vs. well established laundromat is huge as well. Some lenders might require proof of funds for general operating expenditures and emergency reserves (I would assume.)
Or what about a business line of credit? I think you’d probably want both, but what’s advisable?