How does commercial laundry equipment financing work?
Washer-extractors, dryers, ironers and the install work that goes with them can all go on one fixed payment. Here’s what used machines list for in 2026, how long you can finance them, when a lease makes sense, and what you need to qualify.
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This guide is for on-premise laundries in hotels, senior living and hospitals, plus uniform and linen rental plants, healthcare linen services and dry cleaners. Running a self-serve store? Start with our laundromat equipment financing guide instead.
Taxable U.S. drycleaning and laundry businesses brought in about $36.2 billion in 2025, according to the Census Bureau’s Quarterly Services Survey, and that leaves out the in-house laundries at hotels and hospitals. In a separate measure, a study Oxford Economics did for TRSA found the linen, uniform and facility services industry’s economic output reached $27.7 billion in 2024.
What commercial laundry equipment can you finance?
Nearly everything in the plant, from one washer-extractor to a full line. At Five West, commercial laundry equipment financing covers:
- Washing. Softmount and hardmount washer-extractors, industrial washer-extractors, and tunnel washers.
- Drying. Tumble dryers, from 75 lb on-premise units up to industrial sizes.
- Finishing. Flatwork ironers, folders, crossfolders and stackers.
- Hot water. Boilers and water heating.
- The rest of the operation. Route and delivery vehicles, and wash-dry-fold automation.
The install work can go on the same payment. Hardmount washer-extractors get bolted to a pad, dryers need venting, and nearly everything needs plumbing and electrical work. Delivery, installation, training and warranties can usually be wrapped into the financed amount, so send the installer’s written quote along with the equipment quote.
Install timing matters for taxes, too. Section 179 generally applies in the year equipment is placed in service, meaning installed and ready to run, so a dryer that isn’t vented until January may count for the next tax year. For the year-end timing, see our Section 179 year-end playbook. Your tax advisor can confirm what counts for your return.
How much does commercial laundry equipment cost in 2026?
Used washers and dryers list for about $1,900 to $12,500, and used flatwork ironers for $5,000 to $25,000. New on-premise washers and dryers are sold through distributors, and most don’t post prices publicly, so get a written dealer quote. These are the asking prices we found on October 9, 2026:
| Equipment | New | Used, listed |
|---|---|---|
| On-premise washer-extractor, 55 to 70 lb | Dealer quote | $2,200 to $9,500 for 40 to 60 lb units |
| Industrial washer-extractor, 160 to 350 lb | Dealer quote | $5,500 to $12,500 |
| Tumble dryer, 75 to 125 lb | Dealer quote | $1,900 to $3,000 for most, with one listing at $7,000 |
| Flatwork ironer | Dealer quote | $5,000 to $25,000; the $16,500 listing included a folder, crossfolder and stacker |
| Folders, tunnel washers, boilers, dry cleaning machines | Dealer quote | Dealer quote |
Listed asking prices, not appraisals or offers. Used: eBay asking prices, many “or best offer” with freight extra, plus one dealer-reconditioned washer-extractor on Surplus Record.
Plant-scale equipment and installs are quoted project by project. For a sense of scale, TRSA reported in March 2024 that Textile Care Services, a Minnesota linen plant processing about 650,000 pounds a week for healthcare and hospitality customers, was starting a $10 million upgrade that included three new tunnel washers.
How long can you finance laundry equipment?
Up to 84 months on an equipment finance agreement and 60 months on a lease, as long as the term fits inside the equipment’s remaining useful life.
The Coin Laundry Association, writing for laundromat owners, puts the typical prime life of heavy-duty front-load washers and dryers at 12 to 15 years. The IRS figures are shorter: laundry and dry cleaning services generally fall under asset class 57.0, with a 9-year class life and a 5-year recovery period (confirm your class with a tax advisor). Either way, a 7-year term on new machines ends with years of work left in them.
| Amount financed | 36 months | 48 months | 60 months | 84 months |
|---|---|---|---|---|
| $25,000 | About $795 | About $622 | About $519 | About $402 |
| $50,000 | About $1,590 | About $1,244 | About $1,038 | About $804 |
| $150,000 | About $4,770 | About $3,733 | About $3,114 | About $2,413 |
| $350,000 | About $11,130 | About $8,710 | About $7,265 | About $5,631 |
Example payments at an assumed 9%, with no money down, before taxes and fees. Illustrative, not an offer.
I’d pick the term by the payment the laundry can carry in its slowest month. Seasonal or deferred first payments are also available while a new location ramps up.
Should you lease or buy commercial laundry equipment?
Most laundry owners finance to own, on an equipment finance agreement or a $1 buyout lease, because washers and dryers keep earning for a decade or more. A fair market value (FMV) lease has a lower payment and lets you hand the machines back at the end, but that’s worth less if you’ll run them for 12 years.
| Equipment finance agreement | $1 buyout lease | FMV lease | |
|---|---|---|---|
| Who owns it | You, from day one | The lessor, until the $1 buyout | The lessor |
| Terms at Five West | 24 to 84 months | 24 to 60 months | 24 to 60 months |
| Monthly payment | Pays the full price down to zero | About the same as an EFA | Lowest, since it leaves a residual |
| End of the term | Nothing to buy | Pay $1 and the machines are yours | Buy at fair market value, return, or renew |
| Section 179 | Generally yours | Generally yours, same as a purchase | Generally not; payments are deducted as rent |
Tax treatment depends on how your contract is written. Confirm it with your tax advisor.
I’d only pick an FMV lease if you know the machines won’t stay for their full life, like a laundry tied to a contract with a fixed end date. To see the math, our equipment lease vs. loan guide prices one machine under each structure.
Can you finance used or reconditioned laundry equipment?
Yes. Used and refurbished laundry equipment can be financed from a dealer, an auction or another operator, and it’s underwritten on the life the machine will have left at the end of the term. Washers and dryers are judged on age and cycle counts, and a documented service history from the distributor supports a longer term, so send the service records with the quote.
Plan on 10% to 15% down when you buy used from a dealer, and 15% to 25% when you buy from another operator. The rate typically runs one to three points above the same machine new. A private sale also needs a lien search, an inspection or appraisal on bigger items, and the money goes straight to the seller.
Most single used washers and dryers list well under the $15,000 usual minimum, so a used deal often combines several machines, an ironer or the install work. For example, the $16,500 ironer line and a $9,500 reconditioned washer-extractor from the table come to $26,000. That’s about $827 a month over 36 months, or $647 over 48, at an assumed 9% before any down payment. A used-equipment rate would likely push it a bit higher.
Can you get a loan for a laundry business without going through the SBA?
Yes, for the equipment. Washers, dryers and ironers can be financed on their own with an EFA or lease. Qualifying files up to $500,000 are decided on the application alone, and standard deals fund 24 to 48 hours after signing. An SBA package takes weeks.
If you’re buying the building or doing a full buildout, an SBA 7(a) or 504 loan may price better. Plenty of owners split it: SBA money for the build, equipment financing for the machines.
What do you need to qualify for laundry equipment financing?
For most laundry financing under $500,000, a short application and a distributor quote with model numbers are enough for a first response. Underwriting looks at four things:
- Credit. Many established-business programs start around 600 FICO. Startups typically need 700+ personal credit.
- Time in business. Two years or more opens the most programs and the best pricing, and one to two years is still workable. Under a year is a startup file, which also needs relevant industry experience and working capital left after the purchase.
- The equipment. Model numbers, plus age, cycle counts and service history on used machines.
- Financials, on bigger deals. Above $500,000, expect a full financial package.
Your score matters, but it’s rarely the whole decision. Cash flow, the equipment and how much you put down count too. The application starts with a soft credit inquiry.
How does dry cleaning equipment financing work?
Dry cleaning equipment financing works like any other laundry deal. The dry cleaning machine, the pressing and finishing equipment, the boiler that feeds them and the install can all go on one EFA or lease, with the term matched to the machines’ useful life. What’s different is the solvent.
Under EPA’s December 2024 rule on perchloroethylene (perc), perc can’t be used in dry cleaning machines acquired after June 16, 2025. Third-generation perc machines must stop using it after December 20, 2027, and all perc dry cleaning ends after December 19, 2034. EPA opened a reconsideration in July 2025, so these dates could change.
That matters because the term can’t outrun the equipment’s useful life, and a legal cutoff date shortens that life. If you’re replacing a perc machine, I’d finance one that runs a different solvent and skip used perc machines entirely. Under the current rule, a perc machine you buy today couldn’t legally run perc.
Frequently asked questions
Can you finance laundry equipment installation?
Yes, in most cases. Delivery, installation, training and warranties can usually be wrapped into the financed amount, so the machines and the pads, venting, plumbing and electrical work share one fixed payment.
What credit score do you need for commercial laundry equipment financing?
Many established-business programs start around 600 FICO. A business under a year old is underwritten as a startup, which typically means 700+ personal credit, relevant industry experience, and working capital left after the purchase.
How much down payment do you need on used laundry equipment?
Plan on 10% to 15% down on a used machine from a dealer and 15% to 25% when you buy from another operator. Rates on used machines usually run one to three points above new.
How long can you finance commercial washers and dryers?
Equipment finance agreements run 24 to 84 months and leases 24 to 60 months. The term can’t outrun the equipment’s remaining useful life, so used machines are often written on shorter terms than new ones.
Does Section 179 apply to commercial laundry equipment?
Usually, yes. The 2026 limit is $2,560,000, phasing out above $4,090,000 of purchases. New and used equipment can both qualify if it’s placed in service by December 31 for a calendar-year business, and used equipment has to be new to you. On an FMV lease you deduct the payments as rent instead. Confirm with your tax advisor.
Can you finance a new dry cleaning machine to replace a perc machine?
Yes. A replacement machine can go on an equipment finance agreement or lease. Under EPA’s December 2024 rule, perc can’t be used in machines acquired after June 16, 2025, so the new machine should run a different solvent. EPA is reconsidering the rule, so check the current dates.
How fast can you get approved for laundry equipment financing?
Most applications get a first response within 1 to 2 business hours, and clean application-only files can be approved in as little as 30 minutes. Funding can follow 24 to 48 hours after documents are signed.
Price your laundry equipment.
Put your washers, dryers and install quote into the Quote Builder to see an estimated payment, then apply when the numbers work. The Quote Builder doesn’t pull credit, and the application starts with a soft inquiry.
This article is general information about commercial laundry equipment financing. It is not tax, legal, environmental compliance, or accounting advice, or a commitment to finance. Tax treatment depends on your contract and your business; confirm with your CPA. All financing is subject to credit approval and underwriting.