Revenue-Based Financing for Laundromats
Revenue-based financing gives a laundromat a lump sum repaid as a set percentage of revenue, so a slow week sends the funder less. For a business with fairly steady demand, it works best for growth, like new card systems or a wash-and-fold service, where the added revenue repays it. The repayment total is set at signing.
Why a percentage fits some laundromats
Growth changes revenue
Adding card-operated machines, app payments or delivery changes revenue in steps. A share of revenue grows with it.
Slow weeks still happen
Holiday weeks, bad weather and local events can shift traffic. A percentage adjusts without a phone call.
A 7% share through a slow month
Funding of $14,000, capped at $17,920, against $30,000 in typical monthly sales; the funder keeps 7% of each month until the cap is met.
| Month | Revenue | Remittance at 7% | Remittance as a share |
|---|---|---|---|
| An average month | $30,000 | $2,100 | 7.0% |
| A slow month, 21% under average | $23,700 | $1,660 | 7.0% |
The remittance shrinks to $1,660 in a slow month, and payoff runs near 9 months at average revenue. BLS headcount for coin-operated laundries and drycleaners (NAICS 812310) moves just 2.8 points over the year, so use your own thinnest month here.
Where laundromats use it
- Converting from coin to card or app payment systems.
- Launching pickup and delivery wash-and-fold.
- Signing commercial accounts with short-term rental hosts, gyms and salons.
- Renovating the store to draw new customers.
Terms to look at
Coin revenue
Ask how coin deposits are counted, since they arrive in batches when you empty machines. Counting them in the week deposited can raise that week's payment.
Collection method
Some funders split card payment system deposits, others debit the bank account. Ask which, and how often the funder reconciles.
Minimums
Compare any minimum payment with your slowest recent week.
When other tools cost less
A laundromat with steady revenue often gets a better deal on a line of credit for repairs, or equipment financing for machines. Revenue-based financing makes the most sense when the money funds a change that brings new revenue.
Measuring whether it worked
Before signing, note average weekly revenue. After the card system or delivery service launches, compare. If revenue rises, the share repays faster and the investment has done its job. If it doesn't, you know early and can adjust before the next spend.
Multi-store owners
Owners with more than one location should ask whether the share covers all stores or just the one being upgraded, since that changes the payment a lot.
Quick answers
Does revenue-based financing work for a laundromat?
It can, especially for growth like converting to card systems or adding wash-and-fold delivery. The payment is a share of revenue, so slower weeks cost less. Ask how coin deposits are counted and whether there's a minimum payment.
What should a laundromat use revenue-based financing for?
Changes that bring new revenue, like card or app payment systems, a pickup and delivery service or commercial accounts. For repairs and machine replacements, a line of credit or equipment financing usually costs less.
How are coin deposits counted in laundromat revenue-based financing?
Usually in the week they're deposited, which can make payments uneven if you empty machines in batches. Depositing coins on a regular schedule smooths it out. Ask the funder how it counts coin revenue before you sign.
Want to see what fits a laundromat like yours?
Tell us your slow months and your open advances, and we'll shop the file with funders whose programs fit. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.