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?
March 21, 2021 at 7:23 am
#4762
Some lenders will borrow a little for operating capitol in a new build. Its best if you have that banked already cause the building process can be long. Then the ramp up of a new location can take a few months as well. If you are buying an existing location it may be easier to predict cash flow as the seller should have P&L’s to supply you. If its cash flow positive when you buy it then not much reserve is needed.
