View Full Version : Payments
04-03-2006, 12:55 PM
I opened a brand new Laundrymat . The distributer gave us 3 months to not make payments on machines, but added interest for the 3 months. Now we will start making payments but dontmake enough to pay all expences. Can a distributer extend payment plans?
04-03-2006, 06:51 PM
Time for a home equity line of credit on the house.
04-04-2006, 08:43 AM
JimG nailed that one......home equity plus the closing costs on getting that set up all rolled into one. I hope you have the equity available to hold you over for a while. If you don't, I wonder how you qualified for this venture.
Let us know if they extend you more time.
04-04-2006, 12:35 PM
when I decided to add a few machines my distributor referred me to the manufacturer who would not extend credit to me because I had only owned the laundromat for less than a year even though it has been here for 20 years.
The bank down the street from me had no such problems and was happy to lend me a big chunk of the money. I still had to ante up a substantial down payment, but I got a better interest rate than the manufacturer would have had.
When it comes time to replace a few more I'll just go straight to the bank; money seems to be their specialty. I won't ask them for spare parts or technical support, that seems to be the distributor's specialty.
I also don't get a haircut in a restaurant or ask the barber to make me lunch.
04-05-2006, 11:27 PM
Is this your frst laundry? What made you decide to build new vs buying an existing one?
The distrib has his cash and is paid, some bank or money center has your loan, you would have to tak to them about re-fi possibilities.
04-06-2006, 05:35 AM
This is a very classic example that shows new laundromat is a very risky business. Unless you have money to burn, don't get into new. I doubt you can change the payment plan, but you can look into the loan/lease agreement you signed to see if there is any other remedies.