Commercial Laundry Equipment Financing in Canada: Washers, Dryers and Laundromat Equipment
When a washer goes down in the middle of a hotel turnover, or a laundromat’s busiest dryers start running long, the cost isn’t just the repair bill. It’s lost loads, overtime and customers who take their laundry elsewhere. Commercial laundry equipment financing lets you replace or add machines without draining the cash you need for payroll, utilities and supplies.
Financing spreads the cost of washers, dryers, finishing equipment and complete laundry systems over predictable monthly payments. This guide explains how commercial laundry equipment financing works in Canada, what equipment typically costs in 2026, how it applies to laundromats, hotels, care homes and commercial laundries, and what to have ready when you apply.
At a glance
- Use commercial laundry equipment financing for a single machine or a complete laundromat or on-premise laundry package, new or used.
- Terms typically run 24 to 60 months, with $10 buyout, 10% buyback and fair market value options.
- Up to 100% financing is available on approved credit, and new businesses are welcome.
- Most NewCap Leasing applications are reviewed within 24 hours.
Apply for laundry equipment financing or estimate your monthly payment.
How commercial laundry equipment financing works
With equipment financing, the lender pays your dealer or seller for the machines and you repay the cost over a fixed term. With commercial laundry equipment leasing, the leasing company owns the equipment during the term and you make regular payments to use it, usually with an option to buy it at the end. Either way, the machines start earning revenue (or saving outsourcing costs) right away, while you pay for them over the years you use them.
With NewCap Leasing, the process takes four steps:
- Choose your equipment. Pick new or used machines and get a written quote from your dealer or seller.
- Apply online. The application is a short form, and most applications are reviewed within 24 hours.
- Choose a payment plan. Select the term and structure that fit your cash flow.
- Take delivery. Once you’re approved, the supplier is paid and your equipment is delivered.
Leasing or financing vs. paying cash
| Paying cash | Leasing or financing | |
|---|---|---|
| Upfront cost | Full purchase price, plus taxes and installation | Little or nothing down on approved credit |
| Working capital | Reduced by the full amount | Preserved for payroll, rent, utilities and supplies |
| Monthly budget | No payment, but less cash cushion | Fixed, predictable payment |
| Ownership | Immediate | At the end of the term with a buyout, or return and upgrade |
| Best fit | Small purchases with strong cash reserves | Larger purchases, new locations and growing operations |
What commercial laundry equipment can you finance, and what does it cost?
A laundry project can be one replacement dryer or a full installation. The table below shows typical 2026 planning ranges in Canadian dollars, before taxes, freight and installation. Treat them as a starting point, not a quote: capacity, controls, mounting, utility requirements and supplier all change the final price.
| Equipment | Common users | 2026 planning range (CAD) |
|---|---|---|
| Soft-mount washer-extractors, 15–18 kg (33–40 lb) | Hotels, care homes, on-premise laundries | About $11,000–$16,000* |
| Larger and hard-mount washer-extractors | Commercial laundries, large on-premise laundries | Varies widely by capacity; get model-specific quotes |
| Commercial tumble dryers, 14–27 kg (30–60 lb) | All laundry operations | About $5,000–$10,000* |
| Commercial stack washer-dryers | Laundromats, apartments, smaller hotels | About $3,300–$8,800 (planning estimate) |
| Coin- and card-operated washers and dryers | Laundromats, multi-residential buildings | Varies by capacity, controls and payment hardware |
| Folding machines and flatwork ironers | Commercial laundries, hotels, healthcare | Flatwork ironers can exceed $50,000 |
| Payment systems, water heaters, boilers, ventilation, carts | All laundry operations | Varies by project |
*Based on regular and sale prices in a Canadian distributor’s 2026 on-premise laundry equipment listings. Prices change often, so confirm current pricing with your supplier.
Commercial washers and industrial washer-extractors
Washer-extractors are the workhorses of hotel, care home and commercial laundries. Soft-mount models sit on a suspension system, spin at higher G-force to remove more water, and generally don’t need to be bolted to a special foundation. Hard-mount models are anchored to a suitable concrete floor and spin at lower G-force, which usually means longer drying times. Capacity, G-force and programmable wash cycles drive the price. Commercial washer financing lets you choose the machine that suits your loads, not just the one that fits this month’s budget.
Commercial and industrial dryers
Dryers are often the bottleneck in a busy laundry. Gas or electric heat, capacity, reversing drums and moisture-sensing controls all affect cycle times and utility costs. When you plan a package, size your dryers to the output of your washers so wet loads don’t pile up. Commercial dryer financing can cover a single replacement or a full bank of new units.
Laundromat equipment: coin-op, card-op and stack units
Self-service laundromats rely on front-load washers in several capacities, stack washer-dryers to save floor space, and large-capacity machines for duvets and bulky items. Laundromat equipment financing can include the machines, the coin or card payment system and change machines in one agreement.
Folding machines, flatwork ironers and finishing equipment
Automatic laundry folders and flatwork ironers reduce labour on sheets, table linens and towels. They’re a large investment that makes sense when volume is high and steady, which is why commercial laundries and larger hotels often finance them rather than pay cash.
Payment systems and supporting equipment
Card readers, coin systems, water heaters, boilers, lint collectors, ventilation and laundry carts keep the operation running. Ask whether these can be included with your machines so the whole project sits under one payment.
Have a dealer quote already? Estimate your monthly payment with our lease calculator, then apply online when you’re ready.
Financing one machine or a complete laundry equipment package
Many laundry financing requests start with a single machine: one dryer that can’t keep up, or a washer that’s cheaper to replace than repair. Smaller requests are usually quick to approve and keep your laundry moving without a large cash outlay.
Larger projects, such as a new laundromat, an on-premise laundry for a new hotel wing or a plant expansion, often bundle washers, dryers, folders and payment systems into one package. Commercial laundry equipment financing can cover the whole package as a single agreement, giving you one payment and one end-of-term decision instead of several. For example, using the listing prices above, a hotel replacing two mid-size washer-extractors and two dryers might budget roughly $34,000–$50,000 for equipment alone, before installation, freight and taxes.
For projects above $75,000, contact our team for a custom quote rather than relying on the calculator.
Laundry equipment financing by business type
Every laundry operation uses its machines differently, so commercial laundry equipment financing works best when the term and payment structure match how your business earns revenue.
Laundromats and coin laundries
Owners use laundromat equipment financing to open a new store, add machines to cut wait times at peak hours, replace aging units before breakdowns cost them customers, or switch from coin to card payments. Because each washer and dryer earns revenue every day, spreading the cost over the machines’ working life can make sense. Coin laundry financing can cover the machines and the payment system together.
Hotels, motels and resorts
An on-premise laundry gives a hotel control over linen turnaround and quality, and can reduce reliance on outside linen services. Reliable machines matter most during check-out and check-in, when housekeeping depends on clean linens arriving on time. Hotel laundry equipment financing can be structured with seasonal payments for properties with a busy summer or ski season. NewCap also finances kitchen, furniture and guest-room equipment through our hospitality equipment financing program.
Retirement homes, long-term care and healthcare facilities
Care homes and healthcare facilities wash residents’ clothing, bedding and towels every day, and downtime quickly affects residents and staff. When replacing equipment, look for programmable cycles and temperature controls that support your infection prevention procedures. Financing lets you replace failing machines when they need replacing, instead of waiting for the next capital budget cycle. Healthcare operators can also explore our medical equipment financing.
Commercial and industrial laundries
Commercial laundry operators process high volumes for hotels, restaurants, clinics and other businesses, so capacity and uptime drive profit. Industrial laundry equipment financing can cover high-capacity washer-extractors, large dryers, flatwork ironers and automatic folders. If you already own equipment outright, equipment refinancing or a sale and leaseback can unlock cash to fund growth or a new contract.
Apartments, condos and campgrounds
Shared laundry rooms in multi-residential buildings and seasonal laundry facilities at campgrounds need durable, pay-for-use machines. Seasonal and quarterly payment options can match payments to the months when the machines earn the most.
Starting or buying a laundromat? Budget for the buildout, not just the machines
If you’re planning a new location or looking at an existing laundromat, the machines are only part of the investment. Total startup costs often run into six figures once you add plumbing and drainage, gas and electrical upgrades, ventilation, hot-water capacity, permits and a payment system.
Before you sign a commercial lease, have the premises assessed to confirm they can support the machines you plan to install. Extra electrical service, gas capacity or drainage work can change both your budget and your opening date. Check that each machine’s voltage and phase match the building’s supply, since commercial units are sold in several electrical configurations.
If you’re buying an operating laundromat, confirm which assets are included in the sale and get the make, model, serial number, age and service records for each machine. Financing the equipment is different from financing the purchase of the business itself, so discuss the full funding plan before you commit. A working capital loan can help with eligible opening costs that sit outside the equipment.
New or used commercial laundry equipment?
New machines offer current controls, warranty coverage and better efficiency. Used equipment lowers the purchase price, but age, condition and parts availability matter more than the sticker price. NewCap finances both new and used equipment, including machines bought from dealers, at auction or from private sellers.
Before you buy used, gather:
- Make, model and serial number
- Age, and cycle count or hours where available
- Maintenance records and any recent inspection results
- Confirmation that parts and service are still available locally
- Electrical and gas specifications that match your site
Compare the total cost of ownership, not just the purchase price: financing payments, utilities, maintenance, expected downtime and the machine’s remaining useful life.
Can efficient washers lower operating costs?
Water, sewer, gas and electricity are among the largest ongoing costs in any laundry. High-extraction washer-extractors remove more water before a load reaches the dryer, which can shorten drying time and cut gas or electricity use. Actual savings depend on the equipment, load mix, utility rates and how your team runs each cycle.
For laundromats and multi-unit buildings, Natural Resources Canada reports that ENERGY STAR certified coin-operated and pay-for-use washers use, on average, 25% less energy and 45% less water than standard models. That certification covers front- and top-loading commercial washers, not industrial washer-extractors, so check the specifications of the exact machine you’re considering.
Some utilities also offer rebates on efficient commercial laundry equipment. For example, FortisBC offers rebates on ENERGY STAR commercial clothes washers for eligible business customers. Check with your own utility before you buy, and estimate savings using your actual water, sewer and energy bills. A more efficient machine is worth its higher price only if the expected savings support it. When they do, commercial laundry equipment financing lets the monthly utility savings help offset the payment.
Coin, card or app payments: match the system to your customers
Coin systems are familiar and simple, but they require change handling and regular collection. Card and app-based systems simplify payments and provide usage data, though they can involve setup costs, transaction fees and customer support. The right choice depends on your customers, your neighbourhood and the cost of running the system, not just the latest trend. If you’re upgrading, the payment hardware can usually be financed alongside the machines.
Flexible laundry equipment financing structures
Laundry businesses don’t all earn revenue the same way, so the structure of your agreement matters as much as the rate. NewCap offers:
- $10 buyout: own the machines for $10 at the end of the term. A good fit for washers and dryers you plan to run for many years.
- 10% buyback: a 10% residual keeps monthly payments lower, with ownership at the end.
- Fair market value lease: defer part of the cost to the end of the term, then buy, return or keep leasing. Useful if you want to refresh equipment on a regular cycle.
- Sale and leaseback: unlock cash from laundry equipment you already own.
- Step payments: start lower while a new laundromat builds its customer base, then step up.
- Seasonal, quarterly or annual payments: pay more in peak months and less in slow ones, ideal for resorts and campgrounds.
How to apply for laundry equipment financing
Having the right information ready speeds up approval for commercial laundry equipment financing. Before you apply online, gather:
- Your business name and contact details
- A quote or invoice from your dealer or seller showing the equipment and cost
- For used equipment, the make, model, serial number and condition details
- For larger requests, any additional information we ask for, such as financial statements
Founded in 2012, NewCap Leasing has served more than 2,000 companies across Canada, from Toronto and Ottawa to Calgary, Edmonton, Vancouver and Winnipeg. We work with both new and established businesses, and there’s no minimum operating history to apply.
Commercial laundry equipment financing FAQs
Can I finance used commercial laundry equipment?
Yes. NewCap Leasing finances new and used laundry equipment, including laundromat machines bought from dealers, at auction or from private sellers. For used machines, have the make, model, serial number and condition details ready, since age and condition can affect approval and terms.
Can a new laundromat get equipment financing?
Yes. NewCap works with both new and established businesses, and there is no minimum operating history requirement. A new business may be asked for more information during review, so have your equipment quote and business details ready when you apply.
How long are commercial laundry equipment lease terms?
Commercial laundry equipment financing and lease terms usually range from 24 to 60 months, depending on the equipment, the amount and your business needs. Longer terms lower the monthly payment, while shorter terms reduce the total cost of financing.
Do I need a down payment to lease laundry equipment?
Not always. Up to 100% financing is available on approved credit, so many businesses can acquire laundry equipment with little or nothing down. The final structure depends on your application and the equipment.
Can I include installation and payment systems in my financing?
Payment systems, change machines and supporting equipment can often be financed alongside your washers and dryers. Ask about installation and other project costs when you apply so your proposal reflects the full cost of the project.
What happens at the end of a laundry equipment lease?
It depends on the structure you choose. A $10 buyout lets you own the equipment for $10. With a 10% buyback, you pay the 10% residual to own it. Under a fair market value lease, you can buy the equipment, return it or continue leasing.
Are laundry equipment lease payments tax-deductible in Canada?
It depends on how the agreement is structured. Payments under a true lease are generally treated as a business expense, while equipment you own or will own is usually depreciated through capital cost allowance. Confirm the treatment with your accountant.
Can I refinance laundry equipment I already own?
Yes. With equipment refinancing or a sale and leaseback, NewCap buys equipment you own and leases it back to you, turning equity in your machines into working capital while you keep using them.
How fast can I get approved?
Most NewCap Leasing applications are reviewed within 24 hours. Having your dealer quote and business details ready helps avoid delays.
Ready to finance your commercial laundry equipment?
Whether you’re replacing one dryer or equipping a new laundromat, commercial laundry equipment financing from NewCap Leasing can help you spread the cost and keep your cash working. Apply online in minutes, estimate your payment or call us at (416) 645-0286 to talk to a leasing expert.
This article is for general information only and is not financial, tax or legal advice. Equipment prices and financing terms are estimates, may change and are subject to credit approval. Confirm costs, eligibility and tax treatment with your suppliers, lender, accountant and other qualified advisors before making a decision.
