7 Benefits of Car Wash Financing with Specialty Lenders

Starting a car wash business creates an opportunity for consistent revenue. As a c-store owner,
adding a car wash can generate extra income, among many other benefits. Yet, car washes are
also investments. We at Mark VII understand that investment decisions are critical, and you
can’t get them wrong. We can also help take the worry out of car wash financing through our
lending partners specializing in equipment loans.

Benefits of financing through specialty lenders include:

• Revenue production and cash flow from day one
• More available cash
• Conservation of banking relationships
• Less restrictive financing
• Fixed rate benefits
• Deferment options
• Greater differentiation

We’ll support you throughout the entire project: from equipment and installation to marketing,
giving you the best chance to succeed.

What does your car wash loan cover?
Our specialty lenders help you finance both hard costs and up to a certain percentage of soft
costs. Hard costs are tangibles directly related to the car wash system. They include any equipment related to the project:

• The car wash
• Entry system
• Rails
• The drying units
• Vacuum islands
• Menus and signage

Soft costs include intangibles such as:

• Landscaping
• Taxes
• Freight
• Labor
• Plumbing
• Electrical

Qualifying for car wash financing
Before acquiring a loan, specialty equipment lenders typically require a personal credit score
above 640. Also, you’ll need to be established within the industry for two to three years. Other
properties you may own or operate can count towards that number. For example, let's say
you've had a c-store for several years and want to add a car wash to a different, newly
purchased property. You’ll likely qualify on the new site because of your total time in the industry.

The 3-step car wash financing process
The car wash financing process typically involves the following three steps:

1. Application. The first step is a one-page credit application. Typically, applying takes minutes and can be set up within hours. This application is good for up to $250,000 or $350,000, depending on the lender and borrower’s credit.
2. Purchasing, negotiating and finalizing equipment sales. Once the credit is approved, you’ll purchase from your car wash distributor and manufacturer. At Mark VII, we’ll support you through each step of the car wash process, including selecting and ordering the best car wash equipment for your business. Then, you’ll sign documentation and provide any necessary down payments.
3. Equipment delivery, setup, etc. Lastly, we’ll generate and deliver your equipment, assist during construction and help prepare marketing materials.

Financing terms
Car wash financing ranges from two to seven years, with five or six years being the typical term
length. Also, you can borrow on both owned sites and leased sites. Keep in mind, though, that
your equipment loan term must not exceed the remaining term on your location’s lease
agreement. So, for example, if your equipment loan term is for five years, you must have at least
five years left on your location lease.

7 Benefits of car wash financing with specialty lenders
The alternative to car wash financing with a specialty lender is to pay cash for the acquisition.
However, if you decide to take that route, it could take months or years to generate enough
income to ensure a positive return. Another car wash financing option is to borrow from your
bank. However, you could lose capital opportunities and face increased restrictions. But
specialty lenders allow for many benefits, even from day one.

1. Direct revenue production and cash flow from day one. Specialized lending partners can support you in earning car wash business profit quickly. They’ll help you get the necessary equipment, increasing your cash flow, and your gross sales could easily cover the payments from the beginning.
2. More available cash. You have a significant amount of demands on your cash as a business or car wash owner, including: payroll, inventory, and chemicals. Starting the process with a specialty lender takes very little cash, freeing up your money for day-to-day operations and expenses.
3. Conservation of banking relationships. Equipment financing is not the best use of banking capital because banks don’t offer unlimited money to their borrowers. You can conserve your capital for other strategic opportunities, whether it’s acquiring new sites or investment possibilities. You’ll have more flexibility to develop your car wash business in the future.
4. Less restrictive financing. With fewer restrictions than larger financial institutions, specialized lending partners help businesses achieve their goals through a flexible, efficient and hassle-free approach.
5. Fixed rate benefits. You'll receive a fixed rate when you finance your car wash through one of our specialty lenders. A fixed rate remains the same, allowing you to budget more efficiently and generate recurring cash flow. Whether it’s a two or seven-year term, you’re locking in today’s rate when tomorrow’s could be more expensive. The price of starting a car wash business will likely be higher in the coming weeks, months or years to come.
6. Deferring initial payments. When financing through a specialty lender, you can defer payments for the first three months, paying $99.00 monthly, followed by equal payments moving forward. This provides breathing room before regular payments begin.
7. Greater differentiation for c-store owners.As a small business, adding various income streams, like a car wash, better separates you from larger competitors. Also, you’ll open the door for different connections with your customers, adding value to your site and your community.

At Mark VII, we’ll show you how to start a car wash business. Whether you’re at the beginning
of your car wash ownership journey or incorporating one into your c-store site, partnering with
the right car wash distributor and manufacturer is critical. We’ll walk with you every step of the
way, taking the worry out of car wash financing. Through our years of car wash industry
experience, we'll ensure you have the very best opportunity to succeed.