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In This Section:
Traditional Bank Financing 
 
A traditional loan will require a loan-to-value ratio (LTV) of 75%.  The LTV is the ratio of the fair market value of an asset to the value of the loan that will finance the purchase. In this case, the investor must have 25% of the fair market value or “build cost” in cash and the bank will fund the remaining 75%. Do not forget start-up capital and operating capital.  Start-up capital covers items like furniture, brooms, mops and chemicals, usually costing under $10,000.  Depending on the model you choose, operating capital ranges from $25,000 for a self-serve wash to $100,000 for an express exterior to $200,000 for a full-service wash.  You can move forward with less, but not having operating capital is very nerve racking and can lead to business failure. In addition, traditional financing can sometimes be difficult to secure for new investor start-ups even if you have the money because the bank is concerned about your overall business acumen or specific experience in small business operations or specifically in the car wash industry. 

 Financial Tools

The following tools will act as templates and assist you in preparing and completing the financial portion of your business plan.

Cash Flow Projection

 Funding Sources and Use

 Loan Payment Calculator

 Personal Finance Template

 Income Statement Projection

 
 
 
 
 
 
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