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Dry Cleaners Loans: Options to Help Your Business Grow

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If you are looking to expand or start a dry cleaning business, you should understand all of the safety regulations, required insurance and how to obtain financing. Dry cleaner loans may be the ideal way to cover your investment in large equipment and machines, cleaning solutions, conveyors, hangers, clothing covers, tagging systems, and ironing equipment.

Your investment could range from $30,000-$150,000 dollars depending on the size and scope of your business operation. Securing the right dry cleaning loan is crucial to a smooth start to your small business. Besides obvious purchases to start the business you may also need to use part of your loan to cover safety regulation concerns and insurance costs.

The first step is to find a dry cleaners loan you will qualify for as well as one that fits your unique needs. Here are a few options to consider:

Bank Options for Dry Cleaners

According to, traditional banks are not equipped to focus on small business loans any longer. The shift happened after the financial crisis in 2008, and the result is tough lending criteria and banks focusing on big business loan products. It simply isn’t profitable for them to provide loans of under $200,000 and unfortunately, that is what most small business borrowers, like dry cleaners, require.
Other concerns:

  • Banks often consider a dry cleaning business a high risk. There are perceived safety and environmental issues to be concerned about. In turn they demand collateral, guarantees and good credit to qualify.
  • Traditional banks typically will decline a loan if your business records demonstrate decreasing sales, low cash flow, or if you lack collateral or a significant amount of managerial experience.
  • According to, many banks turn away requests for a start-up loan because the business does not have the required three-year financial history to support its credit-worthiness.
  • The bank application is always very rigorous. You must present a very detailed business plan, proof of how you would ensure all safety regulations are followed, an analysis of your competition and your marketing plans, personal financial data and collateral, just to name a few items on the checklist.
  • If you qualify, you receive a relatively low interest rate, though the risky nature of the business may require you pay a balloon payment a few years into the term of the loan. Having a balloon payment may mean you will have to refinance the loan before its paid off and deal with another round of associated closing costs.

Small Business Association (SBA) Loans for Dry Cleaners

The SBA has specific programs set up for loans considered higher risk, like dry cleaning businesses. They are based on the value of your collateral, which could be the equipment required for your business as well as real estate property you own. A 90% loan to value is possible versus 70% or less with traditional bank sources.

The SBA is a government agency does not issue the loans themselves but connects the borrower to their lending partners and guarantees a portion of the loan. Because of this, there are some things you should know:

  • A down-side to an SBA loan, according to, is that if you need to move quickly on this opportunity, you are out of luck. An SBA loan can take up to 90 days or more to put into place and because they are a government backed program, the entire process is document intensive.
  • Your credit, resume, business plan and even your skills and ability to manage your dry cleaning business may also be scrutinized in the decision process for the loan.
  • A plan to address all safety regulations and insurance requirements may be required within the approval process

Alternative Lenders for Dry Cleaners Business

There are other options for a dry cleaning business loan. According to,, about two-thirds of small business borrowers seek alternative lenders as opposed to bank financing. The key is finding the right one for this type of business.

Small business lending companies can be a great alternative to traditional banks or the SBA. They offer loan products that align with your business needs not just their own requirements. Interest rates may be slightly higher than a bank, but are outweighed by the benefits, which include:

  • Typically, they look at what you are trying to build and your goals and find a loan product that works for you. In other words, loans for dry cleaners are based on more than just a credit score.
  • Alternative lenders often have the flexibility to offer several loan products, one of which will meet the needs unique to your business.
    Applications are typically fast, easy and provide you the money you need quickly.
  • Documentation is a fraction of what a bank or the SBA requires.

Why Choose Credibly for Your Dry Cleaning Business Financing Needs

Launching or expanding a dry cleaning venture demands not only understanding safety norms and insurance necessities but also smart financial backing. This is where Credibly steps in as a beacon for entrepreneurs navigating the high costs of equipment, compliance, and operational essentials, with investments often soaring between $30,000 and $150,000. Traditional banks may shy away from what they perceive as risk-laden, small-scale requests, while the thoroughness required by SBA loans can be daunting and time-consuming.

Credibly fills this gap, offering tailored financing solutions without the red tape, focusing on your business’s potential rather than just credit scores. With a simplified application process, quick access to funds, and a range of loan products, Credibly stands out as the go-to alternative, ensuring your dry cleaning business isn’t left hanging.

FAQ Section for Dry Cleaning Business Financing

Credibly offers several benefits, including a simplified application process, quicker access to funds, and less stringent credit requirements. Unlike traditional financing, Credibly’s loan products are designed with the specific needs of businesses like dry cleaning services in mind, providing the flexibility and speed often essential for operational success.

While Credibly’s process is less document-intensive than traditional banks or SBA loans, you’ll still need to prepare basic documents showcasing your business’s financial health, a business plan or summary, and information on how you intend to use the funds. Specific requirements can be clarified during the application process.

Not all funding options require collateral. Credibly offers several loan products, some of which are unsecured, meaning they don’t require collateral. However, securing a loan with business assets may provide more favorable terms and reassure the lender of your commitment.

Loan amounts are customized based on your business’s financial health and specific needs. Whether you’re looking to invest in new equipment, secure a new location, or cover operational costs, you can find loan options ranging from $5,000 up to $400,000 to suit various business endeavors.

Boost Business with Specialized Dry Cleaner Loans

Overcome financial hurdles specific to your industry with dry cleaner loans designed for your unique needs. Speak with a financing specialist to explore your eligible loan options and possibly secure capital in as quick as 24 hours.

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