Updated on

Car Wash Financing: Best Business Loans and Lines of Credit 2023

A car wash business requires investments in the location, equipment, and marketing that will allow you to stand out from the crowd. A car wash loan or line of credit can help you pay for these expenses so you can maximize your profits and grow your business.

Best Car Wash Financing Options
Anna Baluch
Written by:Anna Baluch
Freelance Copywriter

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor


Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

The car wash industry accounts for about $5.8 billion dollars each year, with more than 8 million vehicles using a car wash each day. Despite these figures, it can be a challenge to obtain the capital you need to operate a car wash.

To start and operate a car wash, you’ll need to pay for inventory and equipment, permits and licenses, advertising fees, payroll for employees, utility bills, and more. There are a variety of car wash business financing solutions to help you meet your goals. Below, we’re sharing the best small business loans for car wash from top lenders.

Car Wash Financing: Best Business Loans and Lines of Credit 2022

Before making a commitment, it’s best to compare car wash loans to find the one that’s best for your individual car wash business

In this review, we highlight the terms, rates and fees of each lender, and explain what makes each them a good choice. We also share potential downsides of each company, and provide a rating methodology you can use to select the best car wash financing option for your needs.


Best Car Wash Financing Options - Full Overview

Best Overall

American Express Business Blueprint™ - Best for Fair Monthly Revenues

Average Monthly Revenue
At least $3,000
Min. Time in Business
12 months
Min. Credit Score
Key Features
  • Monthly fee: 3-9% for 6 month loans, 6-18% for 12-month loans, 9-27% for 18-month loans
  • Loan amounts ranging from $2,000 to $250,000
  • No prepayment penalties and no origination fees
  • Convenient application process
Pros & Cons
  • Straightforward application process
  • No prepayment penalties
  • Flexible term lengths
  • Fair monthly revenue requirements
  • Fees can be high
  • Personal guarantee required
  • Not available for startups

Many car wash lenders require $10,000 or more in monthly revenue, making it difficult for those with lower monthly revenues to quality. American Express Business Blueprint™, offers lines of credit to businesses with fair, or decent, monthly revenues.


Main Features
American Express® Business Line of Credit ranges from $2,000 to $250,000. Terms are six, 12, or 18 months and interest rates vary depending on the term. Six-month loans range from 3-9%, 12-month loans range from 6-18%, and 18-month loans range from 9-27%. Each time you draw on your line, you’ll choose a term, pay it back within that term, and then use the funds again if you choose. To qualify for a business line of credit from American Express, you need to have a minimum credit score of 640 and be in business for at least 12 months. However, all businesses are unique and are subject to approval and review. Average monthly revenue requirements are at least $3,000, making this car wash lender a top pick for car wash businesses with average profit margins.

American Express Business Line of Credit is ideal if you’ve been in business for at least one year and do not yet have high profit margins. You can apply online in just minutes and receive a funding decision in real-time.
Backd business loans

Backd - Best for Cheapest Interest Rates

Min. Annual Revenue
Min. Time in Business
One year
Min. Credit Score
Not specified
Key Features
  • Borrow up to $2 million
  • Industry best factor rate for MCA - as low as 1.10
  • APR for the Line of credit product starts at 35%
  • Flexible repayment terms up to 16 months
  • Get funding in as little as 24 hours
  • Check your rate with a soft credit pull
Pros & Cons
  • Fast lending decision and funding times
  • Flexible payment options
  • Large loan amounts
  • No collateral required
  • Must be in business at least one year
  • Rates and fees are not disclosed prior to applying

If you’re thinking of opening a second car wash location and need the funding to do so, Backd may be the solution you need. Founded in 2018, Backd offers small businesses working capital loans up to $2 million. The online application takes just a few minutes to fill out and a lending decision is given almost instantly. 


Main Features
Backd offers working capital loans and business lines of credit to borrowers who may not qualify with traditional banks and lenders. Working capital loans range from $10,000 to $2 million with terms up to 16 months. Payments are made daily, weekly, or semi-monthly. Business lines of credit range from $10,000 to $750,000 with unlimited terms. Neither option requires collateral, and funds can be in your account within 24-48 hours of loan approval. To qualify, you need to be in business for at least one year and have $100,000 or more in annual revenue. You also need to be based in the U.S. and have a business bank account.

Backd is the ideal lender for car wash businesses looking for large loan amounts. Funds can be used to expand your business, upgrade equipment, or pay for other business expenses. As long as you’ve been in operation for one year or more, Backd is worth taking the time to apply.
Lendzi logo

Lendzi - Best Car Wash Businesses With High Revenue

Min. Annual Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Borrow up to $400,000
  • Competitive starting rates on most products
  • Bad credit accepted
  • See your options without hurting your credit
  • Flexible terms: 3 to 15 months
  • Excellent customer reviews on independent review sites
Pros & Cons
  • Excellent customer satisfaction
  • Bad credit accepted
  • Multiple lending and loan options
  • Fast funding times
  • Flexible terms
  • Income requirement may be high
  • Multiple phone calls required after application process

Lendzi caters to those with high revenue that have been denied a loan elsewhere. Founded in 2020, Lendzi is both a direct lender and a lending marketplace with more than 75 lenders in its network. This increases your odds substantially at getting a loan. The company also has 2,000 5-star reviews from satisfied customers on sites like Google, TrustPilot, and Better Business Bureau.

Main Features
Lendzi offers seven different types of car wash loans, including short- and long-term loans, merchant cash advances, equipment financing, business lines of credit, working capital loans, and SBA loans. Working capital loans require the lowest minimum credit score at just 500. These loans max out at $400,000 and terms range between 3 and 15 months. Equipment financing also has a low credit score requirement at just 550, and this type of loan goes up to $2 million. To apply, start by filling out the online application. It takes just a few minutes and will not impact your credit score. Shortly after submitting, a Lendzi representative will reach out to discuss your business further. Your representative will guide you on the types of loans you qualify for, what your payment will look like, and what additional documentation may be required. Once approved, funds can be in your account in as little as 24 hours. To qualify, Lendzi recommends a business history of six months and an annual revenue of at least $180,000.

Because Lendzi works with high revenue borrowers that have been denied a loan elsewhere, they are our top pick for car wash loans with high revenue. The lender also offers competitive rates, multiple loan options, and has excellent customer satisfaction ratings from past and current borrowers.

National Funding - Best for Car Wash Equipment Financing

Min. Annual Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Borrow up to $500,000
  • Fast funding
  • Early payment discounts
  • Loan Repayment 2-5 years
  • Factor rate From 1.10
Pros & Cons
  • Fast funding
  • Early repayment discount
  • Solid reviews and reputation
  • Daily or weekly repayments
  • Expensive rates and fees
  • Lack of transparency

A short term working capital loan from National Funding can help keep your car wash running smoothly. You can receive up to $500,000 in funding to pay for everyday expenses like equipment, rent, payroll, insurance, and taxes. Keep in mind that you’ll need to repay your loan on a daily or weekly basis.


Main Features
National Funding’s short-term working capital business loans can be anywhere from $5,000 to $500,000 with repayment terms ranging from four months to two years. The pay rate starts at 1.10. The requirements for a working capital loan include minimum credit score of 600, a business track record of at least six months, and $250,000 or more in annual revenue.

If you’re an established car wash with sufficient revenue, a working capital loan from National Funding can be a great way to cover operational costs and manage gaps in cash flow when you’re slow. While you can borrow up to $500,000, you’ll need to repay your loan every day or week.
biz2credit review

Biz2Credit - Best for Commercial Real Estate Loan

Min. Annual Revenue
Min. Time in Business
18 months
Min. Credit Score
Key Features
  • Borrow up to $2 million
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Multiple loan types available
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • High borrowing limits
  • Quick application
  • Fast funding times
  • Strict eligibility criteria
  • Extra fees charged

Biz2Credit offers commercial real estate loans for commercial properties, including car washes. You can think of a commercial real estate loan as a mortgage for your car wash. Whether you’d like to purchase an existing car wash or start from scratch, you may get approved for up to $6 million in funding.


Main Features
Biz2Credit’s commercial real estate loans range from $250,000 to $6 million with terms between 12 and 36 months. Interest rates start at 10% and are largely based on your credit score. Here are 8 ways you can build your business credit. To qualify, you need a credit score of at least 660, at least $250,000 in annual revenue, and a business track record of 18 months or more. Due to the high requirements needed for approval, a car wash commercial real estate loan may work best for car wash businesses looking to expand their business rather than those looking to start their business.

If you have good credit, high revenue, and have been in business for some time, a Biz2Credit commercial real estate loan can provide you with ample capital for a car wash property.

Bluevine - Best for Business Line of Credit

Min. Monthly Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Funding up to $250,000
  • Interest rates as low as 4.8%
  • Loan Repayment 6-12 months terms
  • Quick and simple application
Pros & Cons
  • Flexible requirements
  • Competitive rates
  • Fast funding times
  • Not available in every state
  • Short repayment terms

Bluevine is a financial technology company offering small business lines of credit. With a line of credit, you may pull funds whenever you’d like up to your set credit limit, which is based on your credit score and other factors. If you don’t know exactly how much capital you need for your car wash or wish to combat cash flow shortages, a line of credit might make sense.  


Main Features
Lines of credit from Bluevine range from $5,000 to $250,000 with a starting rate of 4.8%. Payments are made monthly or weekly over six or 12 months. The application is streamlined, and you could receive a funding decision in as little as five minutes. Once approved, funds can be in your account in as fast as 24 hours. Bluevine eligibility criteria includes a minimum credit score of 625, at least $10,000 in monthly revenue, and a business history of six months or more.

If you’d like a flexible form of car wash financing, a Bluevine line of credit is a smart option, especially if you have a solid credit history and can secure a low interest rate.
Torro review

Torro - Best for Car Wash Startup Costs

Min. Monthly Revenue
Min. Time in Business
Not specified
Min. Credit Score
Key Features
  • Borrow up to $575,000
  • Loan Repayment 12 - 48 months terms
  • Hundreds of financing options
  • Use the loan for any purpose
  • Fast process
Pros & Cons
  • Many loan options
  • Easy online application
  • Same day funding as loan approval
  • Potentially higher fees: Since start-up capital loans are risky to lenders, you may have to accept a high interest rate.
  • Good credit required for startup loans

Torro is a lender that supports small businesses and entrepreneurs. If you’re ready to launch a car wash, its startup capital loan should be on your radar. You can use it to fund a variety of startup expenses, such as equipment, inventory, payroll, marketing, permitting, and insurance. This product is designed for businesses that have been around for less than six months.


Main Features
Torro offers startup capital loans up to $125,000  with terms ranging from 12 to 48 months. Maximum APRs are 36%, and the initial application takes just a few minutes to fill out. To qualify, you’ll need a minimum credit score of 700 for a startup loan and a maximum revenue of $5,000 per month. Time in business isn’t as important, as Torro looks at a multitude of factors when assessing your application.

If you dream of owning a car wash, a Torro startup capital loan can provide you with the funding you need to make it a reality.

How to Choose the Best Car Wash Financing Option

  • Loan Features: As a car wash owner, large loan amounts, lengthy terms, and flexible repayment terms are ideal. In some cases, however, smaller, short-term loans might come in handy.
  • Application process: When it comes to applying for a car wash loan, chances are you’d like to do so online, from the comfort of your own home or office with minimal documentation. We looked for straightforward applications with quick decision and funding times.
  • Interest rates and fees: The lower the interest rate and less fees you have to pay, the more you’ll save on financing your car wash. A competitive rate can result in hundreds or even thousands of dollars in savings. 
  • Qualification process: If you’re a startup car wash, you’ll want a loan with lenient minimum credit score, annual revenue, and business history requirements.
  • Customer support: Depending on the lender, you can receive answers to your questions and assistance with your application via phone, email, online chat, or website features like loan calculators and FAQ pages.  
  • Online user reviews: Ratings and reviews from independent, third-party sites like Trustpilot and Better Business Bureau (BBB) can help you choose reputable lenders for your car wash loans.
  • Perks and Bonuses: Extras like hardship assistance and free credit score monitoring can make any car wash loan more appealing.


Main Features of The Best Car Wash Financing Options

CompanyMin. Credit ScoreMin. Time in BusinessMin. RevenueLoan AmountInterest Rate
American Express Business Line of Credit64012 monthsAverage monthly revenue: at least $3,000$2,000-$250,0006-month loans: 3-9%    
12-month loans: 6-18%    
18-month loans: 9-27%
Biz2Credit66018 months$250,000$250,000 to $6 millionStarting at 10%
Lendzi5006 months$180,000Up to $400,000Factor rates starting at 1.15
Credibly5606 months$50,000Based on equipment valueNot disclosed
Bluevine6256 months$120,000$5,000 to $250,000Starting at 4.8%
Torro700 for startup loansNot disclosedMaximum revenue of $5,000 per monthUp to $125,000Maximum of 36%


What Are the Costs of Running a Car Wash Business?

If you have plans to start a car wash business from scratch, you’ll need to acquire about 7,000 square feet of land, which may range from $100,000 to $200,000 or even more, depending on the location.

Once you have the land, you’ll need to invest in construction and landscaping, which could cost up to $800,000. This figure will go up even higher if you have to tear down any structures that already exist.

Other expenses you’ll have include equipment, a waste management system, licenses and permits, marketing, and insurance. When you add everything up, you’ll find that a car wash business will cost you around a million dollars. In addition, you’ll have ongoing expenses like water, electricity supplies, maintenance, and payroll which can vary greatly.

While the costs can be expensive, the average car wash business makes $100,000 per year for self-service car washes and up to $900,000 per year for a full-service business.

How Can You Use a Car Wash Business Loan

A car wash loan is versatile, meaning you can use it to cover just about any business-related expense, including:

  • Property: With a car wash loan, you may receive the significant capital you need to acquire land and transform it into a car wash that will attract potential customers in the local area.
  • Equipment: The type of car wash you decide to open will determine what equipment you might finance. At a minimum, however, you should expect to purchase washing systems, chemicals, dryers, blowers, brushes, towels, a water system, and a payment processing system.
  • Marketing: To succeed in the car wash industry, you’ll need to promote your offerings. You can use a car wash loan to pay for a website, signage, social media ads, and other tools that will support your overall marketing strategy.
  • Payroll: If you have a manual car wash, you’ll need employees to wash vehicles. Even if you go the full-service route, employees will be required to maintain equipment and address customer service issues. A car wash loan can help you cover the costs of payroll.


Types of Loans Available for Car Wash Businesses

There are a variety of car wash loans available, including:

  • SBA Loans: SBA loans are partially guaranteed by the Small Business Administration. While they’re difficult to qualify for, they offer large amounts and lengthy repayment terms of up to 25 years. Several popular SBA loans include the Standard 7(a) Loan, 7(a) Small Loan, Export Loan, SBA Express Loan, Veterans Advantage Loan, and CAPLine Loan.
  • Microloans:For a smaller loan of up to $50,000, a microloan is worth exploring. Microloans are usually offered by mission-based nonprofits and government organizations such as the USDA and SBA.
  • Commercial Real Estate Loans: If you need to buy land or property to run your car wash, a commercial real estate loan is useful. You can also use a commercial mortgage to renovate an existing car wash.
  • Equipment Financing: Equipment financing is specifically intended to pay for new or used equipment. The equipment itself will serve as collateral for your loan, so you’ll likely get approved, even with bad credit.
  • Invoice Factoring: Invoice factoring is when you sell your invoices for immediate cash. Usually, a factoring company will invoice you 85% to 90% of your unpaid invoices. Once they collect payment from your customers, you’ll receive the remaining balance minus the factoring fee.
  • Merchant Cash Advances (MCAs): merchant cash advance (MCA) might be a good option if your customers pay you through debit and credit cards. You’ll receive the cash upfront and pay it back with a percentage of your sales plus any fees.
  • Business Credit Cards: Business credit cards can help you cover daily expenses. Most of them come with rewards like cash back, airline points, gift cards, and merchandise. If you pay them in full every month, credit cards may be very beneficial to your car wash business.


Other Types of Car Wash Financing

In addition to small business loans, you may want to consider these car wash financing options:

  • Crowdfunding: You can use crowdfunding to connect to potential investors who believe in your car wash venture and are willing to lend you money. Under the debt crowdfunding model, investors act as individual lenders and will require you to repay them via monthly installments. Equity crowdfunding gives investors shares of your company in exchange for their investments.
  • Friends and family: If you have friends and family that would like to help you fund your car wash venture, treat their contribution like a traditional loan. Provide them with detailed information on what you’ll do with their funds and how you intended to pay them back. Make sure everything is in writing so that everyone is on the same page and there is no confusion.
  • Grants: Small business grants are ideal because you don’t have to pay them back. However, applying for them is usually a long, time-consuming process. The U.S. Small Business Administration (SBA) is one federal organization that offers grants to small businesses run by women, veterans, and minorities. You may also want to check with the Chamber of Commerce and explore grant options in your local area.
  • Equipment Leasing: Equipment leasing is when you rent equipment for a specific period of time. Once your leasing contract comes to an end, you can return the equipment, renew the lease, or purchase it.


Car Wash Equipment Leasing Options

Leasing car wash equipment might make sense if you’re short on cash as most lessors don’t require a large down payment. It can also make it easier for you to update your equipment so that you’re always using the latest and greatest washing systems, dryers, and blowers. Also, depending on the lease, you may be able to deduct your payments as a business expense and save on taxes.

Crestmont Capital is one company that offers leasing for car washes. There are no upfront costs and the company offers flexible term lengths and repayment options. You can apply for a lease for free without any impact to your credit. Deferred payment plans are also available.

Mid Continent Capital, Inc. is another option for equipment leasing. Its lease terms range from 12 to 60 months and can give you affordable access to top-notch car wash equipment, including conveyors, vacuums, operating software, and more.


How to Qualify for Car Wash Financing

Tips that can increase your chances of securing car wash loans include:

  • Build Credit: Your credit score shows lenders whether you’re responsible with money and able to pay your bills on time. If you’re a car wash startup, do your best to build credit. To do so, you may want to open a business credit card and repay your balance in full every time.
  • Consider Secured Car Wash Loans: Secured loans that involve collateral or something valuable you own are less risky and therefore easier to qualify for. You may want to look for secured options if you’re having trouble getting approved for unsecured loans. Just keep in mind that if you default on a secured loan, the lender may seize your asset.
  • Write a Compelling Business Plan: Your business plan will inform lenders about your car wash and what you plan to do with the loan proceeds. Before you submit your plan with your application, make sure it’s well-written and professional.
  • Choose the Right Lender: Car wash loans are not created equal. That’s why it’s in your best interest to shop around and choose a car wash lender with criteria that you meet. Our list of the best car wash loans above is a great starting point.



Car wash loans and lines of credit can provide your car wash business with the funds it needs to purchase equipment, pay employee salaries, and expand your business. As long as you’re willing to put in the work, a car wash business can be a profitable business that you can hold on to long-term. Make sure to do your research and choose the right car wash loan product to meet your business financing needs.

About the Author

Anna Baluch

Written by: Anna Baluch

Freelance Copywriter

Freelance copywriter who enjoys writing for large publications as well as startups, small to medium sized businesses. Anna Baluch is a personal finance writer with over 7 years of experience covering topics related to mortgages, debt management, student loans, personal loans, and more.

More about me
Sarah Brooks

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me

Related Loan Picks

Show More