Finance Assets arranges hire purchase and leasing for UK commercial laundries, launderettes, dry cleaners, hotels, care homes and other businesses buying washer extractors, tumble dryers, flatwork ironers, tunnel washers and finishing equipment.
Laundry equipment finance spreads the cost over 2 to 5 years, so you can replace worn machines, add capacity for a new contract or bring linen in house without a large cash outlay. We are a broker, not a lender, so we compare quotes from our lender panel rather than offering one bank’s product.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
On this page
The short version
- Laundry equipment finance spreads the cost over 2 to 5 years.
- With hire purchase, the business owns the machines after the final payment.
- Commercial washers, dryers and ironers from established makers hold their value well, so new and used machines are widely funded.
- Installation, water softeners, payment systems and ducting can usually be included.
- Finance Assets arranges this finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Washer extractors, barrier washers, tumble dryers, tunnel washers, flatwork ironers, feeders, folders, dry cleaning machines and finishing equipment |
| Terms | Usually 2 to 5 years, and longer on large industrial laundry lines |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both. Used and reconditioned machines from established dealers are widely funded |
| Extra costs | Delivery, installation, plinths, ducting, water treatment and payment systems can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Laundry equipment we finance
Lenders will fund most commercial laundry and dry cleaning equipment, from a pair of machines in a care home to a full industrial processing line.
| Equipment group | Examples |
|---|---|
| Washing | Commercial washer extractors, barrier washers for infection control, and tunnel (continuous batch) washers |
| Drying | Gas, electric and heat pump tumble dryers, and transfer dryers for industrial lines |
| Ironing and finishing | Flatwork ironers, feeders and folders, rotary irons, garment finishers, tunnel finishers and steam presses |
| Dry cleaning | Dry cleaning machines using hydrocarbon and other solvents, wet cleaning systems and spotting tables |
| Handling and tracking | Conveyors, sling and rail systems, sorting stations, trolleys and RFID linen tracking |
| Utilities and payment | Water softeners, chemical dosing pumps, heat recovery and boilers, and coin, card and app payment systems |
We regularly see equipment from makers such as Electrolux Professional, Miele Professional, Girbau, Primus, Speed Queen, Jensen and Kannegiesser. For kitchens in the same hotel, care home or restaurant, see our catering equipment finance guide.
Commercial and industrial laundries
Commercial laundries process linen for hotels, restaurants, healthcare and workwear customers, and their equipment is a large part of the business’s value.
- Funding a whole line. A tunnel washer, press, transfer dryers, feeder, ironer and folder can go on one agreement with installation, so the line is funded as a single project.
- Contract-led growth. If new equipment is needed for a new hotel group or healthcare contract, lenders will look at the contract and its term alongside your accounts.
- Energy savings. Heat recovery, heat pump dryers and more efficient washers cut gas, water and power bills. Showing those savings helps show the new payments are affordable.
- Used and reconditioned machines. Ironers and tunnel washers are long-lived, and reconditioned machines from established dealers are widely funded.
Textile businesses that make rather than clean fabric are covered in our asset finance for textile manufacturing guide.
Hotels, care homes and on-premise laundries
Many hotels, care homes, gyms, spas and holiday parks run their own laundry rather than sending linen out. Bringing it in house often costs less than an outside laundry service.
- Care homes. Care home laundries often need machines with thermal disinfection and sluice cycles, and a layout that keeps soiled and clean linen apart, in line with infection control guidance such as HTM 01-04. Lenders fund these machines in the normal way.
- Hotels and holiday parks. A small flatwork ironer with washers and dryers lets a hotel process its own sheets and towels. Comparing the finance payment with your current laundry bill shows the saving clearly.
- Supplier rental plans. Many laundry suppliers offer rental with servicing included. Buying on finance and taking a separate service contract can work out cheaper over the life of the machines, and you own them at the end.
Launderettes and dry cleaners
- Launderette refits. A full set of self-service washers and dryers with a card or app payment system can be funded together, including installation.
- Your premises lease. Lenders check how long is left on your shop lease. The finance term should not run well past the date you could lose the premises.
- Dry cleaning machines. Dry cleaners replacing older solvent machines with hydrocarbon machines or wet cleaning systems can fund the machine, finishing equipment and installation together.
- Takings records. For cash and card businesses, lenders look at bank statements and payment system reports to see steady takings.
Hire purchase, finance lease and operating lease compared
Hire purchase suits machines you will keep for years. A lease suits you better if you want to spread the VAT or keep upfront costs low. Our types of asset finance guide covers each option in more depth.
| Option | How it works | Best for |
|---|---|---|
| Hire purchase | You pay a deposit and fixed monthly payments, and own the machines after the final payment and any option fee | Laundries and launderettes keeping machines for their full working life |
| Finance lease | You rent the machines for most of their working life. At the end you extend at a low rent, or sell them for the lender and keep most of the proceeds | Larger lines where spreading the VAT helps cash flow |
| Operating lease | You rent the machines for part of their life, then hand them back or upgrade | Hotels and care homes wanting fixed costs and regular replacement |
Hire purchase for laundry equipment
Hire purchase is the most common choice. You pay a deposit, usually 10% plus the VAT, then fixed monthly payments, and ownership passes to you after the final payment and a small option-to-purchase fee. As the owner for tax purposes, the business may be able to claim capital allowances on the machines.
Finance lease for laundry equipment
A finance lease keeps the upfront cost to a few rentals, and VAT is spread across the rentals rather than paid at the start. The lender owns the machines throughout. At the end of the main term you can keep using them for a low secondary rent, or sell them on the lender’s behalf and receive most of the sale proceeds.
Operating lease for laundry equipment
An operating lease sets the rentals against what the machines are expected to be worth at the end of the term, so the lender carries the resale risk. It suits businesses that want to replace machines on a regular cycle. At the end you hand them back, extend the lease or upgrade to new machines.
Laundry equipment finance costs: a worked example
A £60,000 hotel laundry fit-out, with four washer extractors, four tumble dryers and a flatwork ironer, costs about £1,344 a month on a 4-year hire purchase, or about £1,121 a month over 5 years.
| Item | 4 years | 5 years |
|---|---|---|
| Price (excl. VAT) | £60,000 | £60,000 |
| Deposit (10%) | £6,000 | £6,000 |
| VAT paid upfront | £12,000 | £12,000 |
| Monthly payment | £1,343.79 | £1,120.95 |
| Total interest | £10,502 | £13,257 |
The longer term lowers the monthly payment by about £223 but adds around £2,755 of interest. If the hotel currently sends its linen out, compare the payment, plus utilities and staff time, with the monthly laundry bill it replaces.
Illustration calculated in October 2026, assuming an interest rate of 9% a year. It is not a quote. Your rate depends on your trading history, credit profile and the equipment.
VAT and tax on laundry equipment finance
| Option | VAT | Usual tax treatment |
|---|---|---|
| Hire purchase | Paid on the full price at the start, reclaimable if you are VAT registered | You may be able to claim capital allowances, such as the Annual Investment Allowance, and the interest is deductible |
| Finance lease | Added to each rental | Rentals are usually deductible |
| Operating lease | Added to each rental | Rentals are usually deductible |
Care homes that are not VAT registered, or only partly able to reclaim VAT, may prefer a lease so the VAT is spread across the rentals. Check the treatment for your business with your accountant.
What lenders ask for
Most laundry equipment finance applications need the following.
- Your last 2 years of filed accounts, or management accounts and a forecast if you are newer
- Your last 3 to 6 months of business bank statements
- A quote from the supplier showing each machine, installation and any water treatment or payment systems
- For contract-led purchases, a copy or summary of the customer contract
- Photo ID and address history for each director, member or partner
- Details of any existing finance agreements and your premises lease
Related guides
Who we can help
We arrange laundry equipment finance for UK limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000 that are for business purposes. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
Laundry equipment finance FAQs
Can I finance used commercial laundry equipment?
Yes. Used and reconditioned washer extractors, dryers, ironers and tunnel washers from established makers and dealers are widely funded. Lenders look at the age and condition of each machine.
How much does it cost to finance a hotel laundry?
It depends on the equipment, the term and your business. As an illustration, a £60,000 fit-out costs about £1,344 a month over 4 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £1,121 a month over 5 years.
Can a care home finance its laundry machines?
Yes. Care homes regularly finance washer extractors with thermal disinfection, dryers and ironers. Homes that cannot reclaim all their VAT often prefer a lease, so the VAT is spread across the rentals.
Is it better to rent laundry machines from the supplier or finance them?
Supplier rental plans bundle servicing into one payment, which is simple. Buying on hire purchase with a separate service contract can cost less over the life of the machines, and you own them at the end. Compare the total cost of both over the same period.
Can I finance a launderette refit?
Yes. Self-service washers, dryers, payment systems and installation can be funded together. Lenders check how long is left on your premises lease and look at your takings records.
Can installation and water treatment be included?
Usually, yes. Delivery, installation, plinths, ducting, water softeners and chemical dosing can normally be included, as long as the machines make up most of the total.
Get a laundry equipment finance quote
Tell us what you want to finance
Send us the equipment, the price and a few details about your business. We will come back with the options that are realistic and what they are likely to cost.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd, which trades as Finance Assets. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Call 0161 546 9128.
Finance Assets is a trading name of Bolton Business Finance Ltd, an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.