“The access to capital is exceptional, and I think that will continue,” said George Odden, principal of Scottsdale, Ariz.-based Commercial Plus Capital Advisory Services LLC. “I think it’s important to note that interest rates have started to inch their way up, and that trend is likely to continue. Financing markets are wide-open right now, but there certainly are some signs that that could at least slow down in the future.”
The majority of the highly fragmented car wash industry continues to get financing from local and regional banks, with larger commercial banks a bit more reluctant to lend. Real estate investment trusts are increasingly willing to lend to car wash operators through the sale-and-lease-back model, in which the car wash operator sells its facility to the REIT and then rents it. Additionally, private equity groups searching for ways to deploy their growing bankrolls provide another source of capital for small businesses.
The car wash industry’s reputation as a reliable cash generator has given car wash operators better access to capital than some other small businesses, according to Brian Pifer, vice president of entrepreneurship for the Small Business Majority, a Washington, D.C.-based advocacy group for small-business owners.
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The above excerpts were extracted from Full Faith and Credit at carwash.org on 12-29-2018
Read the full article at the following link: https://www.carwash.org/car-wash-magazine/feature-stories/feature/full-faith-and-credit