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    triumphe leasing network
    900 west valley rd
    suite 501
    wayne, pa 19087

    800.863.4822
    888.848.4822 fax

    info@laundryfinance.com

Why Invest?

Why Invest?
Coin laundry is an established industry in a business segment more recession proof than most other small businesses. Owning a coin stores tends to be relatively easy to manage and maintain. It does not require prior experience to be successful and can be operated on a part-time basis. Success in the industry can be traced to a few identifiable decision variables. These include location, demographics, store size and the cash flow dynamics of the investment. Coin stores, when the project is professionally designed, can deliver a very attractive return on investment. Additionally, the tax advantages of coin store ownership are dramatically superior to common alternatives.

The capital intensive nature of coin store investing is a positive in that it presents something of a barrier to entry for competition while at the same time may also be regarded as a limitation to an investor. You need a considerable cash investment to be successful. Opening a coin store also requires patience. It can take 5 to 9 or more months to get a new store open, from start to finish. The investors should also be aware that some markets are more competitive than others. Good locations are in short supply and real estate costs further limit availability. Different markets have varying characteristics that effect lead times, location availability, construction costs, rents, utility costs, vend prices, product mix, customer loyalty, shopping patterns and resultant profit margins. The industry is becoming more sophisticated as stores become larger, provide customer convenience areas, use of electronic card systems and frequent marketing. Selecting an equipment distributor who is right for you is one of your first important decisions. Often, prospective investors concentrate on getting the best price without regard to the many services provided by a good distributor.

Key Decision Variables
There are a number of key business variables that need to be addressed by a prospective investor. These are not cut and dry. They require study and insight. There is never a guarantee when someone decides to go into business. However, the more one questions, the more one learns, increasing the probability for success. The selection of an equipment distributor, a location's demographics, shopping patters, competition, and financial planning at both the capital and operating levels are the key elements that will be addressed.

Distributor
Personal chemistry and a sense of confidence in this organization are paramount in your selection of a coin laundry equipment distributor. He will provide answers to your many questions while assisting you in the critical selection of a location. Tenant lease negotiations, store design and layout, equipment mix, its installation, hiring employees, opening and operations are just some the areas he will assist you with.

Time and again we see customers being pennywise and pound foolish in their choice of an equipment distributor or financing source. As with most things, they learn the hard way that you really do get what you pay for! When choosing a distributor it is our advice that you concentrate on his past performance including store success rates, existing stores that continue to be operated by the original owners and satisfied customers.

Location
This is the single most important decision. It will be the result of many hours of time spent looking at alternatives, demographics, lease, zoning, water use, competition, and many other variables. Both Triumphe and your equipment distributor will provide assistance with this decision.

Store Size
The right store size is a function of location, demographics, the local real estate market, and your own financial capability. The trend is toward larger stores. However, competition, parking, traffic patterns and your personal risk profile all play a role in this key decision.

Money
How much money do I need?
Store size, construction costs, equipment mix, rent, utility, and financing deposits plus working capital needs all combine to give you the answer to this question. Total project cost is the sum of the equity you will be investing and the amount of financing you will need. As a rule of thumb, Triumphe will provide about 2/3 of a coin store project's cost. The amount Triumphe will finance is normally limited to the actual equipment cost. You will be responsible for all "soft costs" which are leasehold improvements, deposits, legal and architects fees and working capital. This investment can be initially estimated at $40 to $60 a square foot for planning purposes. Naturally the specific circumstances of your actual project will allow you to zero in on more accurate numbers as you accumulate specific information.

How much money can I make?
Rule one is that there are no guarantees when you go into business for yourself. Coin storeowners have historically enjoyed very attractive returns on their investments and efforts. These are returns that dwarf bank interest rates, the stock market and real estate. Increasingly coin storeowners are opening multiple stores, aided by technology and knowledgeable industry specialists like a quality distributor and Triumphe. How much you can make is up to you. The potential is great. The location you select, store size, rent, labor costs, competition, management and ability to operate professionally all combine to determine your actual profitability.

How much money can I borrow?
Triumphe will finance up to 100% of your coin laundry equipment cost. As a very rough guideline, this can be estimated at $90,000 to $110,000 per 1,000 square feet of store size. Very few established lenders that do specialize in coin laundries,. If they do consider this type of transaction they tend to limit financing to 80% or less of equipment cost. Many lenders, particularly banks, credit unions and the SBA, require additional collateral such as real estate or marketable securities. This approach reduces their risk and ties up your assets for the long-term, reducing future flexibility and profitability. With Triumphe, the equipment and your signature are the oniy collateral normally required.

What's the interest rate?
Our first response to this common question is always: Compared to what? The financial markets dictate Triumphe's cost of money based upon the financial markets perceived risk of the type of financing we do. We finance coin store investors going into a business, often for the first time. Triumphe provides 2:1 leverage on their investment. The value of the equipment if it had to be removed and resold would certainly be less than the original cost. Compare this to financing a home and that real-estate tends to appreciate rather than depreciate. The collateral is quite different and logically so is the cost of financing. New car loans have a lower interest rate than used car loans for this same reason. Consumer finance for furniture, appliances and the like has higher implicit interest rates, as do unsecured loans.

How about the Prime Rate?
A well-established business with acceptable cash flow and equity often can borrow at prime rate. A new coin store is not yet established. Also, Prime rate loans "float" on a monthly basis. Triumphe's financing is a fixed rate for 5, 7 or even 10 years. It wasn't too long ago that the Prime Rate was two to three times as high as it today.

All things considered, the cost of coin laundry equipment financing is a great value. It falls just about in the middle of the range of different types of borrowing costs. It provides coin store investors with the opportunity to earn exceptional returns on their investment and uses only the equipment as the collateral. This last feature will be the fuel of future growth as you expand your business empire in the years ahead.

How do I qualify for financing?
Approval for Triumphe's equipment financing is a function of six items:
1. Our independent evaluation of the demographics, competition and financial dynamics of your specific opportunity.
2. Personal net worth of the owners.
3. Amount of and source of equity capital.
4. Past and future continuing income of investor(s).
5. Personal and business credit histories.
6. Interviews with prospective store owners.

Conclusion
Coin laundry financing can afford an investor a higher than average return on investment. This is an established, recession proof business. The industry is maturing, becoming more capital intensive, competitive and technologically sophisticated. However, it remains a small business opportunity within reach of many individuals. The historic success rate of coin laundries is excellent. The fact that a coin store can be operated on a part time basis is a key attraction to many investors. This fact also allows for multiple store ownership. The prevalent use of debit cards adds financial control, management and marketing capabilities to a business that was previously just a morn and pop industry. As larger stores are being built, the amount of capital required is increasing, but so are the profit margins and return on investment being realized from economies of scale. Investing in a coin laundry business requires capital, patience, trust and credit worthiness. It is not for everyone, but it has proven beneficial to many successful business owners.. If you believe that it is right for you, please discuss this opportunity further with your local distributor. Feel free to contact Triumphe for help in your decision process. We look forward to partnering with you as you further explore this great industry.