Proposal Letter - Laundromat

4 August 2011

Mr. Carlos Arias

President

Bank of America

Dear Mr. Arias

I am a 42 years old American living in White Plains, NY and after much research. Have decided to start a business in Laundromat services. This business and I would greatly appreciate your review and consideration for financial assistance from your branch.

Out lined below are my reasons for choosing.

A Laundromat business has been classified as one of the safest investments, It's estimated value being 50 times the net profit. This is because self service laundries have both a high fix cost and a low variable cost. The investment should be regained in three years or less. I would anticipate good cash flow and a return on capital between 20%-30% in the first year to pay off the loan as soon as possible to reduce cost of interest paid on the loan. I will be collateralized by the assets of the business and the steady income it brings along with an initial down payment at least 30%.

The main factors to consider are:

* Laundromats offer good rates of returns up to 25% on investment.

* Great tax benefit, because the equipment used is depreciated against income.

* Cash business.

* Low labor usually requires minimum skills.

* Minimum inventory, Laundromats function on water, electricity and gas.

* Good turnover Laundromats are highly in demand because of the relative ease of investment.

The potential business retail space is 4000 Sq feet there is a lot of good floor space. The lease duration could be 12 to 15 years. It is located close to a shopping center with a large flow of people where residents get most of their goods and services and this would be an attractive location for the shopping centers customers, and it is in an overall safe location. In addition it is surrounded by alarge apartment buildings with tenants who are from lower to mid income levels. After doing my own research through a 200 person survey, 65% of the people said that most of the landlords do not offer a laundry facility. Besides being the sole Laundromat in this neighborhood, the nearest one is 5 miles from the area and only offers few services that Laundromat is not well kept and at any given time there are several machines out the order.

The Laundromat will supply full washing, drying and optional folding services. Our commitment to provide professional, friendly, prompt and, most importantly, convenient services is what sets it

...