Dry cleaning business finance for dry cleaners and laundries

• Dry cleaners take cash and card over the counter, with steady weekday trade from workwear and peaks before weddings, school proms, Christmas and the spring changeover of winter coats and duvets. Alterations and shoe repairs often supplement income.
• Launderettes and self-service laundries earn from vended machines paid by coin, card or app, plus service washes. Demand is steady but the machines run hard and utilities are a large cost.
• Commercial laundries invoice business customers monthly. Hotel and holiday-park volumes swing with the tourist season, while care homes and clinics provide a steadier base. Linen hire businesses also own a large rotating stock of sheets, towels and table linen that wears out and must be replaced.

All three are capital-heavy for their size. A dry cleaning machine, washer-extractors, tumble dryers, finishing and pressing equipment, a flatwork ironer or a steam boiler can each cost more than a year's profit, which is why equipment finance sits at the centre of most deals in this trade.

Dry cleaners using solvents need an environmental permit from their local council, which sets limits on solvent consumption and emissions and requires records and maintenance. Defra's process guidance note for dry cleaning describes what councils expect, and councils charge fees for solvent emission permits. Changing machines or solvent can mean varying the permit, so speak to the council before ordering. Lenders and buyers of a business will ask to see the permit and recent inspection records.

Machinery costs are fixed while takings move with the seasons, so build a reserve in busy months, keep consumable stock lean and arrange facilities before the slow period rather than during it. Adding services such as alterations, curtain and duvet cleaning or business accounts smooths the year. Utility costs can wipe out the benefit of a cheaper used machine, and a solvent change made without checking the permit can cause compliance trouble. A personal guarantee is common on unsecured borrowing, so understand what you are signing.