If you're looking to obtain a car wash construction loan you might be wondering why they are so difficult to obtain. There are numerous reasons for this, not the first of which is that commercial construction loans are difficult to do to begin with.

Fist, they are a startup business. Banks do not really like to do loans on startup businesses. There are no historical financials on the site. Lenders do not want to lend money on businesses that have no financial reports. It is only logical to think that you would be more inclined to lend money to an existing business than a brand new business.

Second, many banks are concerned with cost overruns. If you're looking for a high loan-to-value loan and if there is a cost overrun, it will be more than the bank originally intended to lend. Many banks simply cease to lend on the project and they remain unfinished. There are many unfinished projects waiting to be completed and no ability to repay the loan because there are no business revenues and they can only repay the debt from personal assets.

Third, they are considered special use facilities. When you have a special use facility they tend to depreciate faster if they go into foreclosure. If a bank lent money on an apartment building or an office building and it had defaulted, the bank could hire a management Ceramic coating and continue to run them until a new buyer was found. Should the site go into foreclosure and be auctioned, in general an investment property such as an apartment building or office building will retain better value than a special use property such as a car wash.

When it comes to qualifying for a car wash construction loan, if you already own existing locations it will be easier to obtain a loan than those who do not own car washes. If you have never owned or if you have never managed a car wash before it will be more difficult to obtain the loan than if you had. It is true that running a car wash is not as difficult is running other type of retail establishments such as hotels or restaurants but they still need to be managed. If you do not plan on managing the car wash business directly, you definitely will want to bring in a manager that has experience running them.