How To Offer Finance For Laundry Equipment

What offering customer finance really is

Customer finance lets you offer a way to pay over time for high-value laundry equipment and related services, rather than requiring the customer to fund everything upfront. In practice, you introduce the customer to a regulated finance provider that may offer options such as hire purchase, lease or a fixed-term loan. The equipment is typically the asset that supports the agreement, which is why asset finance is so common in the UK for both new and used commercial laundry kit. For many operators, the commercial benefit is straightforward: you protect working capital while still upgrading machines, improving resilience when energy, water and maintenance costs are moving targets.

Good finance is less about “getting accepted” and more about matching term length to real-world cash flow.

Why buyers choose finance in laundry and dry cleaning

Laundry equipment decisions are increasingly driven by total cost of ownership, not just the purchase price. Modern machines can materially reduce energy and water use compared with older stock, and smart features can cut downtime through monitoring and predictive maintenance. When a buyer can see that efficiency improvements may support the monthly payment, finance becomes a rational operating decision rather than a last resort. It also helps when a site is expanding capacity, replacing multiple machines at once, or investing in automation to mitigate labour constraints and extend trading hours without adding headcount.

How finance can lift conversion and order size

Offering finance removes a common barrier to purchase: the gap between the moment a machine is needed and the moment cash is available. Spreading cost over a term can turn a “later this year” upgrade into an “install next month” decision, which is often where sales are won. It can also increase average transaction values, because customers are more likely to choose higher-capacity or energy-efficient equipment when the payment is framed monthly rather than as a single large invoice. For suppliers and operators selling B2B services, finance can reduce price sensitivity and support package deals that include installation, servicing and payment systems.

Standout line: The strongest finance offers sell outcomes: reliability, efficiency, and predictable costs.

Typical transaction values (UK guide)

What you can put on finance

1. Commercial washing machines (including energy-efficient models)

2. Commercial dryers and stack units

3. Ironers, folders and finishing equipment

4. Payment systems (card, app-based and contactless terminals)

5. IoT monitoring, remote diagnostics and smart controls

6. Water-saving upgrades (reclaim systems, efficient valves and dosing)

7. Installation, delivery and commissioning (where eligible)

8. Service and maintenance packages (where structured as part of the offer)

FCA and compliance essentials (the non-negotiables)

If you introduce customers to finance, you must stay within your permissions and the agreed process with the broker or lender. Marketing must be clear, fair and not misleading, especially around APR, term length, fees, and what happens if payments are missed. You should not present finance as guaranteed, and you must avoid giving regulated advice unless authorised to do so. Keep records of customer communications and use approved materials, as finance promotions are regulated.

The introducer model explained in plain English

An introducer model is designed for businesses that want to offer finance without becoming a lender. You promote finance at the point of sale and capture the customer’s basic details, then introduce them to a broker who sources suitable funding from a panel of lenders. The broker handles eligibility checks, affordability and compliance steps, and the lender makes the credit decision. Your role is to make finance visible, keep the customer journey smooth, and ensure the commercial proposal (what is being purchased, delivery dates, and invoice values) is accurate. It is widely used in UK equipment sectors because it keeps the process specialist, while letting you focus on selling and servicing customers.

What the customer journey looks like (step-by-step)

1. Customer chooses equipment and package (including any install or service elements that may be financed).

2. You present payment options: pay in full or apply for finance, with clear example costs.

3. Customer completes a short application online, typically taking only a few minutes.

4. Identity and credit checks are completed by the broker or lender.

5. Approval and offer issued, showing term, monthly payment, APR and any fees.

6. Customer accepts the agreement electronically.

7. You confirm delivery and installation dates and provide any required supplier documentation.

8. Equipment is delivered and accepted (often triggering payout under the finance agreement).

9. Customer repays monthly for the agreed term, while you continue service and support.

Getting set up with Kandoo

Kandoo works with UK businesses that want to offer straightforward finance options to customers purchasing higher-value goods and services. The aim is to help you present monthly costs clearly, while keeping the regulated elements of the process handled properly through a broker-led journey. Once onboarded, you can add finance messaging to quotes and your website, guide customers to an online application, and align finance with the way you sell in the real world: upgrades, replacements, and multi-item packages. Done well, this becomes part of your commercial proposition, not an afterthought.

Next steps you can take this week

• Add a “from £X per month” example to your top 5 equipment bundles.

• Train staff on when to offer finance (for example, multi-machine refreshes and efficiency upgrades).

• Review your quote template so it includes cash price, deposit (if any), term options, and installation timelines.

FAQs

Do I need to be FCA authorised to offer finance?

Not always. Many businesses operate as introducers, where the regulated credit broking and advice elements are handled by an authorised broker or lender. Your exact setup depends on your activities and the agreed process.

Is asset finance suitable for used laundry equipment?

Yes, it can be. Asset finance is commonly used for both new and used commercial equipment, subject to lender criteria such as asset age, condition and supplier documentation.

What’s the difference between hire purchase and a lease?

With hire purchase, the customer typically owns the equipment at the end of the term after final payment. With a lease, ownership usually remains with the lessor, which can appeal if the customer wants to upgrade more frequently.

Will offering finance slow down my sales process?

If implemented well, it usually speeds decisions up. The key is having finance presented early (on the quote) and a simple online application flow.

Can finance include installation and servicing?

Often, yes, if structured appropriately and eligible under the lender’s criteria. This is particularly useful for packaged deals where uptime and maintenance matter.

How do energy-efficient machines affect the finance case?

Efficiency gains can improve the business case because lower utility and maintenance costs can shorten payback. Many buyers justify upgrading when projected savings help offset the monthly payment.

Are approvals guaranteed?

No. All finance is subject to status, and lenders will assess creditworthiness and affordability.

What should I put on my website and in-store?

Clear, compliant messaging that finance is available, that terms and APR vary, and that approval depends on the lender. Use broker-approved wording and avoid implying certainty or “no checks.”