Besides finding a profitable wash at a location and price that is right for them, the most common difficulty carwash buyers encounter is securing financing.

After having found a wash and negotiating a good price, hopeful buyers often find it difficult either to get a bank loan, or they find themselves saddled with a loan that leaves them little or no room for profit or growth.

Such problems can be avoided if the buyer follows these few simple steps before entering into a complicated transaction like buying a carwash:

The first thing that any borrower must know is that banks are a business — there is nothing mysterious or diabolical about them. They are in business to make money, and providing loans is a service that banks offer in order to increase their own profits.

Borrowers should approach bankers accordingly.

Because of the mystique associated with banking, borrowers often approach securing a loan as if the bank were doing them a favor.

The truth, however, is just the opposite. By renting their product — money — the loan applicant is actually the person in the position to negotiate.

Thus, all the normal business rules apply, and the first is to establish a good personal relationship with the person or persons with whom you intend to do business.

Before you think about looking at carwashes, get to know the commercial loan officer at the bank you have always taken your business to. Take her or him to lunch and discuss your plans to buy a carwash.

Another common mistake buyers make is that they fail to pre-qualify before they find a wash.

Put your financial house in order before you apply for the loan. Gather your tax returns and other appropriate records together and find out what your credit rating is before you go to a lending institution.

There may be a spot on your record of which you are not aware or you may be in better shape than you imagined. In either case, you will be able to negotiate better with knowledge of your position.

Also, sellers are more likely to share their time and the financial records of their business with a qualified buyer.

Commercial banks are not well equipped to liquidate assets; the decision to grant a loan is based heavily on the management skills of the borrower. If you are a competent manager with years of experience, this should pose no problem.

Company financial statements and any other records indicating your good managerial skills will go far in impressing bankers.

If, on the other hand, this is your first attempt in business, then any skill in the management of people or resources, such as teaching experience or the military service, should suffice.

Whatever the case, you must convince the lender that you have what it takes to operate a carwash successfully.

Letters of reference from current or past employers are helpful, but nothing impresses a banker more than a recommendation from another bank.

Any potential borrower should know first hand that his is not the only institution you are prepared to negotiate with. Every banker likes to build the impression that his is the best, and possibly the only deal in town.

A good broker, especially one familiar with the carwash industry, will be able to give you the names of several lenders who will be more than happy to help the right person. Don’t be afraid to say no.

Whenever possible, use a lender who knows the carwash industry. Because a carwash is a service business heavily dependent on machinery, many lenders lack the experience necessary to see the potential of some washes.

You will avoid many difficulties if you take the time to find the right person, one who knows the industry and your needs. So be discerning and get the best deal.

Norris Streetman is the owner of carwashforsale.net and a commercial real estate broker who specializes in the sale of carwashes.