Financing Solutions

1. Commercial/Industrial Laundry

Western State Design (WSD) offers many competitive financing solutions for new laundry equipment, laundry expansion, laundry relocation or construction of new facilities. Western State Design (WSD) has the right solutions to meet your individual requirements.

Most banks, or other funding sources, have limited knowledge of the commercial/industrial laundry business. WSD has developed exclusive sources that will help fund your project.

Following are some typical financing options:

• Project financing

  Project financing offers solutions for startups. Financing may blend various components of the requirements. Project finance transactions involve single purpose entities where the primary source of repayment is cash flow from the project, supported by one or more project support agreements with third parties.

• WSD works closely with financial advisors who can assist in putting this type of project financing together for you.

• Traditional bank financing
• WSD has the experience and expertise to review your needs and assist in developing a cash flow analysis that will allow you to reach out to commercial lenders and obtain your funding requirements.
• WSD will assist you to obtain the best program that meets your demands and allows your business to grow.
• WSD will assist you with developing cash flow analysis that assure potential lenders that the funding required will meet your program intent.

• Leasing
• Capital and Operational leases will be customized to allow graduated flexible payment amounts, extended terms and potentially no down payments.
• Off-balance leasing offers an excellent solution for many customers.

• Industrial revenue bonds

  The Economic Recovery and Reinvestment Act of 2009 (ARRA) significantly increased the types of projects that can be funded with low–interest rate, tax-exempt Industrial Development Bonds (IDBs). IDBs are used to fund the acquisition of land, buildings and/or equipment. The interest rate savings associated with tax-exempt IDBs can be significant. Borrowers have found that IDBs can reduce their financing costs by 20% to 30% annually.

• Vendor financing

  This program allows direct funding to existing customers with credit decisions based upon experience and existing cash flow.

• Small Business Administration (SBA) Loans

  There are many financial strategies that may potentially minimize the initial infusion of cash. It is feasible to extend payment terms to meet your cash flow requirements. It is imperative to obtain financing from pre-approved lenders that understand the laundry industry.

• EX–IM Financing

  Ex–Im Bank assists exporters by guaranteeing term financing to creditworthy international buyers, both private and public sector, for purchases of U.S. goods and services. Goods eligible for Ex-Im Bank financing must be shipped from the United States to an international buyer. These working capital loans, made by commercial lenders and backed by EX-IM bank’s guarantee, provide you with the liquidity to accept new business, grow your international sales and compete more effectively in the international marketplace.

2. Self-service/Coin Laundries

Many competitive solutions are available for financing self-service coin laundries. Western State Design (WSD) will meet with you and customize the best solution for your needs. Financing is available for clients new to the industry and experienced laundry owners.

The following are some typical programs:

• Equipment Finance:

  Many WSD equipment vendors offer attractive Variable and Fixed Promissory Note programs. The Payment Terms and Conditions can vary considerably to meet the requirements of each customer. The financing programs will include equipment costs, hook-up, laundry tenant improvements and equipment installation including start–up.

  More details: Dexter Financial Services (link to http://www.dexter.com/financial/)

• Leasing:

  Leasing programs are available to finance self–service coin laundries, which require no initial down payments. Leasing programs may offer additional tax incentives for the individual investor. Some leases are fixed payment, fixed term and others are structured with lower payments that ramp up as the laundry revenue increases. Both capital and operating leases are available.

• Traditional bank financing:

  WSD can assist you with your bank to help facilitate your loan to expand or purchase a new laundry.

• Small Business Administration (SBA) Loans:

  WSD has pre-approved Lenders who know our industry. Generally, the Terms and Conditions of an SBA loan are fixed. However, there are many options available that may be more suitable for your project.

  More details: SBA loan programs (link to http://www.sba.gov/financialassistance/borrowers/index.html)

Currently, there are many financing solutions based upon your operating proforma and the infusion of capital for acquiring or re-equipping your self-service coin laundry. All options should be considered by any potential investor and operator.