Rate: Prime + .0% -2.00% (Varies
by credit risk)
Value: 50 -
- 1.0% (Broker Fee / To Be Determined)
US Citizen or permanent resident alien
Reasonable financial statement or credible
Collateral:First lien on land, building, equipment and inventory Additional
outside collateral may be necessary.
Construction financing is one of
the more difficult types of financing to do. First of all it is considered a startup business. Banks, in
general, do not like to start up businesses. Individuals who have never owned or operated a car wash before
will have the most difficult time obtaining car wash construction loans. The more organized you are with your
project the more likely you are to obtain financing.
Another reason why banks do not like construction financing is frequently there cost
overruns. If you are doing a high loan-to-value loan and there are cost overruns, the bank can simply stop funding
your loan. There are many projects nationwide that have never completed construction due to the bank failing to
provide additional financing. Make sure you plan will cost overrun contingencies.
It also depends on what type of car wash you are looking to construct. If you're looking to
build a self-service car wash it is more likely that you will be approved than if it is a full-service tunnel wash.
Obviously a self-service car wash costs less to construct than a full-service tunnel wash.
If you already own the land that you are building your car wash on and you have applied for
permits it will be easier for you to obtain financing than if you are still looking to purchase land. The
underwriter will simply look at it as being more work to do if you have not purchased the land
These are all common sense things. It is highly likely that you will have to have a feasibility study
done in order to obtain a loan. This additional money spent is well worth it. You might find out things about the
neighborhood that you would not find out doing your own investigation. Many major companies will not build
restaurants or gas stations or hotels
Click here for a list of documentation that will
be necessary for car wash construction loans.
To prequalify for car wash financing, download the following
forms and provide the following information and fax to (202)478-1811 or email