If you have a business that requires the use of washers and dryers, chances are, at some point, you've thought about leasing laundry equipment. The decision to lease laundry equipment can provide you with modern machines, while you save your capital funds for other business expenses. Additionally, laundromat equipment leasing will help you avoid having to pay for expensive repairs if the machines break down.

Laundry equipment leasing pricing and costs can vary widely depending on whether you lease new or refurbished laundry equipment, what type of equipment you lease, and how much equipment you need. So, before you sign a laundromat equipment lease, ask yourself:

1. Do you need a laundry equipment lease for a coin-operated laundromat business?

2. Do you want to lease laundry equipment for private business use in a place such as a hotel or restaurant?

3. And, do you need laundry equipment financing?

Action Steps
The best contacts and resources to help you get it done

Lease laundry equipment for a laundromat business

If you want to open a new laundromat or replace the machines in an existing laundromat, then you may want to consider leasing laundry equipment. Leasing laundry equipment will reduce your initial expenses, compared to buying. The exact cost depends on how many machines you get and the make and model of the machines. But, expect to pay somewhere around a couple thousand dollars per month for 20 to 30 machines.

I recommend: MacRAE's BLUE BOOK from Owen Media Partners lists dozens of companies that lease laundry equipment. Its website enables you to submit a form for a free personalized quote. Also, check out Laundry Today from TerranTribune for a good article that weighs the cost benefits of leasing laundry equipment.

Lease laundry equipment to wash and dry linens at your business

For a couple hundred dollars per month, you can avoid having to purchase, maintain and repair washing machines and dryers at your restaurant, hotel or other non-laundromat business. A laundry equipment lease lets you focus on your business, and not worry about whether the linens will get clean.

I recommend: Continental Girbau helps you design your on-site laundry operations and offers tips for reducing costs. To get a detailed quote for a laundry equipment leasing for your business, contact a distributor in your area by entering your zip code at Alliance Laundry Systems.

Obtain laundry equipment financing

If you need to obtain a large number of machines, then you may have trouble closing the deal without laundry equipment financing. Financing laundry equipment can be done through many major suppliers, and financing rates are as low as 8%.

I recommend: 4Leasehelp offers several types of programs to finance the lease of laundry equipment, including standard commercial leases, and an application-only express lease. Haiges Machinery gives a good example of some of the financial terms and costs of laundry equipment financing.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Leasing laundry equipment can provide your business with tax savings. If you decide to lease, then be sure to mention it to your accountant.

Laundry equipment leasing allows a business owner to use laundry equipment that may be out of his or her price range. A lease often lowers the monthly payment price for laundry equipment while providing businesses with the ability to use better quality equipment than they could afford.

With a laundry equipment lease, you also have the option of upgrading your laundry equipment at the end of the lease without having to purchase new equipment. This can reduce the cost of replacing damaged equipment or equipment that underwent a high quantity of wear and tear. Before you lease laundry equipment:

1. Determine what type of laundry equipment financing works best. Companies offer different types of leases, so evaluate each option.

2. Consider the options at the end of the lease. You may want to buy out the lease company to own the equipment, upgrade to new equipment or consider another alternative.

3. Read the fine print to see what the lease company includes in the finacing; some companies will cover soft costs like shipping, while others won't.

Action Steps
The best contacts and resources to help you get it done

Find companies that offer flexible laundry equipment financing

Very few business owners fit into a one-lease-fits-all qualification. You need to find a company that offers solutions that work best for your budget and your needs. The more options a lender offers, the better your chance of finding a solution with which you can work.

I recommend: LeaseLine provides approved clients lease puchases, operating leases and flexible payment options. Harbour Capital works with you to find the best lease option.

Turn to specialized companies to finance laundry equipment

While you can get leasing from any equipment company, you might prefer to work with one specific to your industry. Look for companies that have several years of experience. This can help ensure you know all the fees upfront.

I recommend: Haiges Machinery specializes in financing laundry equipment for dry-cleaners, laundromats and other commercial laundering businesses. It has five generations of experience in the industry and offers three locations to serve its clients. Viking Financial works with Wascomat to create a financing option tailored to your needs. It has provided over 20,000 clients with financing options specific to the industry.

Work with companies that allow you to lease pre-owned laundry equipment

Used or refurbished laundry equipment often costs less than new pieces. Many companies only offer financing on new equipment, so if you consider this option, you need to find one of the companies that provides leases for used equipment.

I recommend: Trident Leasing Group offers flexible equipment leasing and end-of-lease options for new and used equipment. Dexter Financial, founded in 1991, specializes in laundry equipment leasing for dry cleaning and laudromats. It offers pre-owned equipment on its website.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Leasing laundromat equipment can offer many tax benefits. Ask your lender or a certified CPA what these are to find out how you can take advantage of these benefits.

Laundry equipment financing involves making monthly payments for usage of different supplies. If you want to lease laundry equipment, then you will want to look at the options open to you.

In regards to laundry equipment leasing supplies and equipment, you will want to see what different machines and accessories will be covered under a lease. For example, soap and bleach supplies are not a likely option for a laundry equipment lease, however, washers and dryers will be.

1. Determine the equipment pieces for Laundromat equipment financing. Find out what pieces you need to outfit your operation.

2. Decide about accessories you want covered under your Laundromat equipment lease. Although regular needed supplies are not an option, accessories like coin changers can be included when you finance laundry equipment.

3. Find laundry equipment for lease. Not every supplier will have Laundromat equipment leasing, so you need to shop through specific vendors.

Action Steps
The best contacts and resources to help you get it done

View new and refurbished laundry equipment options

New and refurbished laundry equipment may include top load washers, front load washers, dryers, extractors and tumblers. Many companies will offer laundry equipment leasing for any of these equipment pieces. You may also want to check if service of the equipment can be included in your lease agreement.

I recommend: The Miller Laundry Systems site retails used and refurbished machines that can be included under their lease agreement. Lease specifics include a down payment, a monthly charge and one to seven year lease terms. Wascomat has financing available on their coin equipment as well as wet cleaning pieces of equipment.

Consider heavy duty pieces with laundry equipment financing

Besides washing machines and dryers for lease, you can look for companies that supply heavy duty cleaning equipment for your company. Your lease inventory may include pressing machines, steamers, spotting boards, air compressors and vacuum units. At the end of the lease agreement, you will have to decide whether to renew the lease for these pieces or purchase them for your company.

I recommend: Crest Capitol has a catalog of heavy duty equipment pieces that they extend leasing agreements on. You can contact the company online for an instant quote. Elease International has similar equipment choices that they cover under their lease program. Financing options include buyout leases and operating leases.

Finance accessories under your laundry equipment lease

More expensive accessories are viable options to be covered under leasing laundry equipment agreements. Your supply list may include soap dispensers, coin changers, furniture for customers and laundry carts.

I recommend: UnoClean has leasing options open to new and established customers. Browse their catalog to view coin laundry accessories found under the miscellaneous accessories section of their online catalog. Nelson & Small can be contacted regarding their accessory items available for lease. Inventory includes laundry carts, soap vendors, bill changers, furniture and more.

A new or start up laundry business of any type will more often opt to lease equipment rather than buy the appliances. Leasing laundry equipment allows a laundry business to obtain equipment it may not be able to procure. A lease will often offer a purchase option at the end of the lease term. Laundry businesses may also upgrade laundry equipment at no extra cost rather than maintain older equipment. Get an overview of laundry leasing terms by reviewing the following key words.

Action Steps
The best contacts and resources to help you get it done

Equipment lease agreement

Equipment leasing for laundry equipment is an agreement in which a company or individual has use of a piece of laundry equipment, but does not own it. The user of the equipment makes payments to the owner of the equipment. There are many different types of equipment lease agreements available to fit specific needs.

I recommend: IGWT Leasing Services explains the meaning of a lease and the advantages of leasing laundry equipment.

True Lease agreement

A true lease gives the buyer the option to purchase the laundry equipment at the end of the term for its fair market value, re-rent the equipment or return the equipment.

I recommend: Equipment leasing company, Harbour Capital explains a true lease and purchase options available at the end of the lease term.

Leasehold improvements or buildout

This is the specific construction and associated cost required to modify the inside of a building before laundry equipment is installed.

I recommend: Dexter Financial, a laundry equipment financing company defines a leasehold improvement or buildout in its glossary of terms. Mac-Gray gives some basic tips for opening a laundromat including appearance and the advantage of a leasehold improvement.

End of lease (or term) options

The options agreed to between the lessor and the lessee in the laundry equipment lease agreement. Most commonly, there will be a Fair Market value, $1.00 value or a 10% purchase option.

I recommend: Trident Leasing Corporation, a laundry equipment leasing company explains the most common end of lease options.

Step payment plans

Step payment plans meet the needs of laundry equipment companies that are looking for smaller payments to accommodate the newness of the leased equipment. This program starts with small payments and increases to larger payments during the term of the lease.

I recommend: 1st Equipment Leasing Company explains step payment plans and other payment structures available in a laundry equipment lease agreement.

Coin-operated laundry start up

A start up coin operated laundry is a new self service laundry business that is sometimes staffed but usually operates with few or no employees. Start up coin laundries will need financing and leasing of equipment to begin business.

I recommend: Entrepreneur gives tips on starting a coin-operated laundry. Coin Laundry Association has a helpful article on the financing, lending and leasing of a new coin laundry business.