Determining the investment requirements for a laundromat can be a confusing process, but it's really not so different from any other business. A notable difference? Most laundries pay off their initial loan in the first three years.

A Laundry Loan from Laundry Experts

Choose Speed Queen Financial Services for your equipment loan -- which requires customers to invest as little as 30 percent in cash into the total cost of the store, including the equipment and leasehold improvements. In comparison, banks may require additional collateral, including personal real estate, and will probably not take into consideration the equipment value as a part of the loan.

Your down payment will be determined by the size of the store, cost to build, cost to buy, equipment costs, etc. On average, a new laundry can be a total investment of anywhere from $250,000 to $1,000,000. Most entrepreneurs investing in Speed Queen stores will invest between $75,000 and $300,000, and will finance the balance, giving them good leverage on their cash.

Establish Funding

When first deciding on where to get funding, there are a couple of places to look for help. A good place to start is with the equipment manufacturer. Speed Queen Financial Services offers a selection of financing programs for everyone from first time investors to veteran owners of multiple stores.

Another reliable source is the Small Business Administration. The Small Business Administration offers a wide variety of loan programs at www.sba.gov.

No matter if you go to your local bank, the equipment manufacturer or the SBA for financing, you will more than likely need a business plan. If you aren't sure how to draft a complete business plan, your local equipment distributor or local Senior Core of Retired Executives (S.C.O.R.E.) is a great place to start.