How to Lease Dry Cleaning Equipment With No Credit History
Dry cleaning businesses are necessary because many consumers may have fabrics or garments that they cannot wash or dry in their household. Also, executives and other busy professionals may lack the time to have their shirts and garments cleaned properly. Purchasing dry cleaning equipment can be a challenge for those that do not have credit history. Certain criteria may be necessary to increase your chances of being approved for a dry cleaning lease even if you have little to no credit history.
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Instructions
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Assess how long you have been in business. Many dry cleaning leasing companies will request that you have been in business for two to three years minimum before they will lease dry cleaning equipment. If you are just starting your dry cleaning business, you will require other options in order to be approved. For example, savings for your business, or you may be limited to the amount of equipment you can initially lease.
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Contact the manufacturers directly that offer the dry cleaning equipment you are looking for. Go straight to the source to find out if the manufacturer may have special programs for those with little credit. Request brochures and other quotes by speaking to the sales representative from the manufacturing company to get an idea of the best and cost effective equipment you need.
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Make sure you have a business plan established for your dry cleaning business. Since you are working with limited credit, you most likely will have to prove to the leasing company that you have everything in place to make a profit and comfortably pay the lease each month. Your business plan will include the amount you expect to charge for your dry cleaning services, your target market, when you expect to make a profit, the current success of the dry cleaning industry, as well as other factors about your dry cleaning business. If you are unsure of how to create a business plan, speak with volunteer consultants (see Resources).
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Obtain a copy of your credit report and credit score. Everyone, whether they have credit or not has a credit score. The credit score range is between 300 to 800 points. You will be able to inform the salesperson of your credit score and situation ahead of time without them checking your credit report. You can obtain your credit score and report from Transunion.com, Equifax.com and Experian.com.
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Have some form of savings for your business. Leasing companies may be willing to extend leasing options to your business if you have savings to cover the lease payments. Have your accountant either draft up a balance sheet or profit and loss statement that will show any assets that will take care of the leasing payments each month. You can also make copies of your bank statement to submit with your leasing application.
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Gather any current business references that you have that can verify your on time payment history. Business references may be the property management company that receives payment for your dry cleaning business each month, as well as suppliers, and other venders you must work with to keep your dry cleaning business functional. If you have not started your business yet personal references like your rent, or car note may be used as references. The dry cleaning leasing company you select must decide if personal references are satisfactory for approval.
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