More than almost any other business, the dry cleaning and laundry business relies heavily on its equipment. Modern, up to date, and well maintained dry cleaning equipment is paramount to faster and cleaner garments and more satisfied customers.
When talking about laundromats with coin operated machines, for example, the equipment is the star. Poor maintained laundry equipment will drive customers away and they will not come back. Having up to date equipment is important to this industry.
In these days of economic uncertainty leasing dry cleaning and laundry equipment became a very popular way to update the equipment without having to spend much needed cash up front.
The benefits of leasing
• Tax benefits – Leasing equipment instead of buying it saves you on the taxes you have to pay with the purchase. And that is only the beginning. In some leases you can deduct the payments on the lease AND the amortization of the equipment.
• Quality Products – You can choose the equipment that will work the best for your business. You won’t have to settle for less because you can’t afford it. When the difference in price is spread over the life of the lease, the difference in lease payment is usually not very high. You can be picky about the quality of the dry cleaning or laundry equipment you lease.
• Available cash – Leasing does not require a big down payment, as financing the equipment through a bank does. Some leases have a 0% down payment. That leaves more cash in your account to handle purchases of new detergents, hire new employees or fluctuations in the business.
• Keep your credit line intact – When you lease equipment, you do not tie up your line of credit, if you have one for emergency expenses.
• Upgrades – Some lease programs allow you to upgrade your laundry equipment when you need to do it. You can add-on new machines or upgrade the model. When the lease is over, you can start again with newer machines.
• Customer satisfaction – with fixed payments for the equipment you leased, you can now turn more of your attention to your customers.
As banks became more cumbersome and their approval rate of loans for small business at a record low, making small business loans from banking institutions becomes rarer. These days most of small business owners start to look for funding on the internet. A recent research found the about 65% of loan seekers start their search on mobile devices and in times of the days and week when the banking institutions are closed. The younger generation finds that a commitment online is quicker and more accurate when everything is spelled out and they can read it at their leisure without the pressure to sign.
Leasing your dry cleaning and laundry equipment online makes a lot of sense when equipment and its performance is so important to the life of the business.