With interest rates at an all-time low, banks are becoming more selective with the business owners they choose to fund. However, if you wish to grow your business and expand your stores, there are still some solutions available to you without the help of a bank. In addition to securing the best Coin-Op Advantage program for your laundry business, consider the following solutions.
If your business garners enough profits that there is leftover cash after paying all of your dues, you may be able to fund growth internally. While this option may seem like a simple solution, it’s important to understand the tax implications of doing so. For example, American Dry Cleaner states that U.S. tax laws create a number of obstacles that must be overcome in order to avoid the penalties and corresponding higher tax bills that result when IRS auditors restructure loans that don’t meet their criteria; Whenever a loan is made between related entities, or when a shareholder makes a loan to his or her incorporated business, our tax laws require a fair-market interest be included.
Determine whether or not local economic development group would be interested in helping your operation grow. The more you can prove a successful track record, the easier it will be to gain some backing from these groups. Remember, a successful business benefits the tax base and increases employment in the area, both of which are beneficial to the community.
Large-scale funding via online portals is another alternative. While it wasn’t legal in the past, laundry businesses can now offer shares or bonds to the big investors in exchange for money to grow their business.
At Irving Weber Associates, we have a unique understanding of the Laundromat business. Our specialty programs offer protection to financially secure your business in the best way possible to ensure your success. For more information, contact our experts today at (855) 764-7406.