Tips for Renting Dry Cleaning Equipment

Dry cleaning businesses are important in any economy as businessmen will always need to have their shirts cleaned, starched and pressed. Once you have the proper dry cleaning equipment and your location selected, you do not need much else in order to open your doors. If you do not have a credit history but need to lease dry cleaning equipment, it is still possible to obtain the necessary equipment.

Start establishing a credit history. Open a credit card account under your name to start establishing your credit history and begin to save money in a savings account or interest-bearing checking account. Put some bills under your name and make sure to make your payments on time.

Get a partner or co-signer who has a credit history. Your partner or co-signor can then lease the equipment for the company.

Obtain an equipment equity loan. Similar to a home equity loan, this type of loan program allows you to buy equipment with loan money from a bank or equipment lender. The loan can be structured two different ways. The first way is to have the lender purchase the equipment that you need and let you lease the equipment from them, paying the lender monthly rental payments. The second way is for the lender to take ownership of other equipment that you already own through your giving them a bill of sale; you are then given a loan that you use to buy the new dry cleaning equipment. In either scenario, the bank becomes the owner of some equipment (either new or old) in return for your paying them monthly payments in return. You can obtain an equipment equity loan through banks or private financing firms. (See link under Supporting Links)

Put up collateral. Although equipment lenders can always repossess the leased equipment if you fail to make your payments, they may want more security than that. Put up additional equipment which you own up as collateral (or receipts, property, or other collateral), and you will be more likely to obtain a lease. See Equilease for more information on equipment leases based on collateral.

Do your research and obtain quotes specific to your situation. Spend some time researching equipment rental companies and their rates. Shop around if you cannot obtain an equipment lease from the first company you contact. Sites such as BuyerZone provide online quote searches for you to review various leasing companies and the lease plans available.