How do linen and uniform rental plants finance laundry equipment?
Industrial laundry equipment financing lets a linen or uniform rental plant pay for tunnel washers, washer-extractors, dryers and ironers over time, with the machines as collateral. Here’s what plant-scale laundry machinery has cost in public budget and bid records, how the payment lines up with your route revenue, and how Five West handles used machines, big expansions and route trucks.
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How does industrial laundry equipment financing work for a plant?
You pick the machines, we pay the distributor or seller, and the plant makes one fixed payment a month. On an equipment finance agreement (EFA), the plant owns the equipment from the start and the funder holds a lien until the last payment. EFAs run 24 to 84 months. Leases run 24 to 60 months and end with a $1, 10% or fair market value buyout.
Most plants go the EFA route. A tunnel or a set of dryers will keep running long after the last payment, so it’s worth owning. An equipment lease with a fair market value buyout fits a plant that plans to upgrade on a schedule.
Our usual minimum is about $15,000 for the whole deal, and deals run into the $5M+ range. Many programs start around a 600 FICO for a company with two or more years in business. You’ll typically hear back within 1 to 2 business hours, and approvals can come in as little as 30 minutes on a clean file. Our commercial laundry equipment financing page lists everything we cover. If you run an on-premise laundry in a hotel or hospital, our commercial laundry financing guide is the better starting point.
How much does industrial laundry equipment cost?
It runs from five figures for a few washer-extractors or dryers to several million dollars for a tunnel line with its dryers. Plant-size machines rarely carry a posted price, so public records are the clearest look you’ll get. Here’s what we found:
| Equipment | Public body and record | Amount | What it covers |
|---|---|---|---|
| Tunnel washer line plus washer-extractors and dryers | Los Angeles County jail laundry, Public Works board letter recommending approval, April 7, 2026 | Asked for up to $5,500,000 for the machinery; construction work estimated at $1,910,000 | A tunnel washer (continuous batch washer) system with 8 modules (110 lb batches), a press, a shuttle and 3 pass-through dryers, plus seven washer-extractors, six dryers and a lint vacuum |
| Washers, 105 lb | Summit County, Ohio jail, resolution introduced October 27, 2025 and adopted November 10, 2025 | Contract approved for up to $97,215.60 for three | Freight, delivery, equipment and installation, with a 10-year warranty on bearings, seals, frames and tub shafts |
| Washer-extractors and gas dryers | Washington County, Maryland jail, bid award of August 31, 2021 (older record) | $14,000 per washer-extractor; $5,550 per dryer | Three of each, a $58,650 total bid, with a $1,500 trade-in credited |
Public budget, bid and contract records we found, checked November 11, 2026, not appraisals or offers. The 2021 bid is older, and prices have likely moved since. Every row is linked in Sources.
In Los Angeles, the machines are the biggest piece, but the construction work is estimated at about a third of the machinery figure on top. Demolition, slab work, utility piping and electrical all add up. Installation can be included on qualifying transactions, along with delivery, training and warranties. Soft costs can go on the quote, usually around 20% of the equipment amount, depending on credit and collateral, so send the installer’s quote with the equipment quote.
When does a tunnel washer make sense over washer-extractors?
When the pounds get big enough. Milnor says its compact 5-module tunnel, which takes 110-pound batches, is ideal for laundries with limited space and at least 1,000 pounds an hour of production. The EPA says tunnel washers can handle up to 2,000 pounds an hour and are used in very large operations like hospitals, prisons and hotels.
Water use matters too. In its May 2023 WaterSense guidance, the EPA puts most washer-extractors at 2 to 4 gallons of water per pound of laundry, depending on the machine, the number of wash cycles and the water levels. Tunnel washers typically use 2 gallons or less, because the rinse water flows back against the goods and gets used again. The EPA adds that tunnels cost more to install but need less operating and maintenance labor.
So how do you decide? Look at your pounds per shift today, what your route contracts are adding, and what you pay for water, sewer and gas. Is the plant running a second shift just to keep up with the washers? That’s when I’d start pricing a tunnel.
Two notes on the quote. A tunnel line also needs a loading system, a press or extractor and a shuttle to feed the dryers, so list every piece and ask us how each one fits. Water reuse systems, soil-sort rails and RFID tracking aren’t on our equipment list, so ask about those before you count on them.
What does a tunnel line or a set of dryers cost a month?
Here are estimated payments on a few amounts, two of them taken from the table:
| Example amount | 36 months | 60 months | 84 months |
|---|---|---|---|
| $58,650: three washer-extractors and three dryers (2021 bid) | $1,865 | $1,217 | $944 |
| $97,216: three 105 lb washers, installed | $3,091 | $2,018 | $1,564 |
| $750,000: example amount, tunnel line with dryers | $23,850 | $15,569 | $12,067 |
| $1,500,000: example amount, plant expansion | $47,700 | $31,138 | $24,134 |
Estimates for an established business (two or more years in business) on an equipment finance agreement, nothing down, before taxes and fees. The last two rows are round example amounts, not prices we found. The $97,216 row includes installation, which can be included on qualifying transactions. A $1.5 million project would go through our large-ticket equipment financing, which is for requests of $1 million or more from companies with $10 million or more in annual revenue. Your real payment depends on credit, the equipment and the term.
I’d size the payment to the contracts the machines will serve. If a new hospital account brings in steady pounds every week, set the payment against what that account pays you each month, and leave room for the slow weeks. I’d look at a longer term on a tunnel and a shorter one on things that wear faster.
The Quote Builder runs your own numbers as an EFA or a lease, with no credit pull.
How are $1 million-plus plant projects financed?
Through our large-ticket equipment financing. It’s built for established companies with $10 million or more in annual revenue financing $1 million to $10 million and up. That covers a full tunnel line, a plant expansion, or the same equipment rolled out to several plants.
The review reads the company’s financial statements, so you’ll want two years of statements, tax returns and a debt schedule. In return, the structure can follow the project. Payments can start when the equipment goes into service, deposits and progress payments to the vendor can be funded along the way on long lead times, and installation, freight, software and training can go on the agreement.
Planning the work in phases? Ask about one master agreement with a schedule for each phase.
Can you finance a used tunnel washer or buy from another plant?
Yes. We finance new, used and refurbished laundry equipment from distributors, auctions and other operators. There is no age limit, though older equipment can be tougher to get done. On a used machine, the term depends on its age and cycle counts, and older equipment typically gets a shorter term than new.
With good credit, you usually don’t need a down payment, even on used equipment or a plant-to-plant sale. When you buy from another operator, we run a lien search, add an inspection or appraisal on the bigger pieces, and pay the seller directly. If the seller still owes on the equipment, we pay off their lender at closing so the lien is released. Have your attorney read the purchase agreement, especially if the sale includes removal and rigging out of their building.
Already own your machines outright? An equipment leaseback lets a plant with two or more years in business pledge equipment it owns free and clear as collateral for a lump sum. You keep owning and running it, the lien is released when the balance is paid, and funds usually go out 2 to 5 business days after signing. The machines need a resale market to qualify as collateral, so ask us before you count on it.
Can you finance route and delivery trucks?
Yes, route and delivery vehicles are on our list. A truck bought complete with its body on one invoice goes on one agreement. If the chassis and the body come from different sellers, ask us and we’ll tell you how to set it up.
Truck deals move at the same pace, with approvals in as little as 30 minutes on a clean file. Buying a used box truck for a route? Our used box truck checklist covers what to look at before you pay.
Section 179 may let you deduct qualifying equipment and trucks in the year they’re placed in service. Your CPA should confirm how it applies to your plant.
Can a new linen plant get equipment financing?
Yes, selectively. We’ll consider qualified first-time owners. The programs we place these deals with typically want 700+ personal credit, real experience running or managing a laundry, working capital left after the purchase, and usually some money down.
A signed customer contract and a well-known brand of machine help the file. If you’re also buying the building, that part may fit an SBA 7(a) or 504 loan, which Five West can place, while the machines go on equipment financing. Our startup equipment financing guide covers the rest.
What should a plant send with its application?
- The distributor quote, with model numbers and every piece you want financed.
- The installer’s quote for plumbing, electrical and setup, if you want it included.
- Serial numbers and cycle counts on anything used, plus service records.
- The seller’s name on a plant-to-plant sale, so the lien search can start.
- Your main route contracts or a summary of them, if the expansion is tied to new accounts.
Bigger projects need financial statements. Either way, one funding professional handles the deal from application to funding, and you can check where it stands online.
Frequently asked questions
How much does a tunnel washer cost?
It depends on the modules, batch size and extras. In an April 2026 board letter, Los Angeles County Public Works asked for up to $5.5 million for laundry machinery that included an 8-module tunnel washer (continuous batch washer) system with three pass-through dryers, seven washer-extractors and six more dryers, plus an estimated $1.9 million for construction work. Get a written distributor quote.
Can you finance a tunnel washer?
Yes. Five West finances tunnel washers for high-volume plants, new or used, usually on an equipment finance agreement of 24 to 84 months. Installation can be included on qualifying transactions. Projects of $1 million or more for companies with $10 million or more in annual revenue go through large-ticket financing.
How long can you finance industrial laundry equipment?
Equipment finance agreements run 24 to 84 months and leases 24 to 60 months. On a used machine, the term depends on its age and cycle counts, and older equipment typically gets a shorter term than new.
Do I need a down payment for laundry equipment?
With good credit, you usually don’t need a down payment, even on used equipment or a plant-to-plant sale. New plants and first-time owners usually put some money down.
Can route trucks be financed with Five West?
Yes. Route and delivery vehicles are financed, and a truck bought complete with its body on one invoice goes on one agreement. Approvals can come in as little as 30 minutes on a clean file.
Is there an age limit on used laundry equipment?
There is no age limit, though older equipment can be tougher to get done. Condition, cycle counts and service records matter, and a documented service history from the distributor helps.
Planning your next line?
Send the distributor quote with one short application. A soft credit inquiry starts it, and a dedicated funding professional takes it from there to funding.
This article is general information about financing industrial laundry equipment for linen and uniform rental plants, not tax, legal or accounting advice or a commitment to finance. Amounts shown come from public records on the date checked, not appraisals or offers. Example payments are estimates for an established business with no money down; actual terms and payments depend on credit approval, the equipment and the structure. All financing is subject to credit approval and underwriting.