Laundry Equipment Leasing Key Terms

Learn about leasing laundry equipment by reviewing key terms

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.

 

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.
Try: 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.
Try: 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.
Try: 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.
Try: 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.
Try: 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.
Try: 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.

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