In the March issue of Professional Carwashing & Detailing, contributor Thomas Hawkins discusses the basics of various lending agreements available to today’s carwash operators in the article “Common financing options.”
Hawkins notes, “For many operators, one of the most challenging steps in kick-starting a carwash business is securing smart financing. Further, in today’s technology-driven market, even modernizing and reopening an existing location requires capital beyond what most investors may have on hand.”
Therefore, Hawkins highlights a few common financing options: direct financing, SBA loans and manufacturer financing.
On SBA loans specifically, Hawkins explains, “The SBA does not directly lend money to small businesses; instead, it sets guidelines for the loans offered by its partnering lenders, community development organizations and micro-lending institutions. Since the SBA guarantees that the loans will be repaid, it helps minimize some of the risks for its lending partners.”
As such, PC&D has put together an infographic illustrating three benefits of SBA-guaranteed loans.
Be sure to read the article when it becomes available.