Financing with IPSO
How to open a laundromat in 8 steps
The process for opening your laundromat business and securing financing from IPSO Finance is done in eight steps.
Because IPSO Finance controls its own underwriting process, we are able to make loan decisions quickly. The entire process, from first meeting with your IPSO distributor to securing funding, can take only 1 to 2 months, on average. Contact us to get started today!
- Meet with your local IPSO distributor to gather information about the laundry business. Ask questions about the industry as a whole as well as questions about the laundromat business in your specific area.
- Log on to IPSOna.com to submit your pre-approval application for financing. Pre-approvals are valid for 90 days.
- Secure a location for your new laundromat. Contact your local distributor for help and to know what to look for during your location analysis . Other details to keep in mind:
- When renting space, the length of the lease will need to be equal to—at minimum—the length of the loan term.
- Work with your local IPSO distributor on the laundry equipment mix you will need at the location.
- Make the landlord aware you plan to house a laundromat at the location. Before signing a lease, negotiate any improvements needing to be done to the building (e.g. a new hot water heater).
- Negotiate the Letter of Intent (LOI) with the landlord and give a copy to IPSO Finance. Do not sign the lease until your credit request and the location has been approved by IPSO Finance.
- Submit documents for full approval of your loan. You’ll need your latest business and personal tax return forms. In addition, you’ll need to put down 30 percent of the total transaction, which includes building costs, impact fees and/or equipment costs.
- Prepare to sign loan documents and the lease at this stage. The landlord will also need to sign an IPSO Finance document, Agreement to Assign Lease and Landlord Consent at the time of your signing the lease.
- Make any improvements to the building, if needed.
- Install all necessary equipment.
- Finally, your loan will be funded!