It is unusual to be able to get into the business without some cash available.  Occasionally, one party is able to secure equity in the business by earning it through day-to-day work, or working on behalf of other capitalized partners.  This is often called “sweat equity.”  This situation is uncommon.  Most often, you will need cash to secure traditional financing, most SBA financing and most funding from other people.  This demonstrates your commitment to make the business succeed.  Beyond cash for a down payment[1], you will need:

• Interim Financing - Often called construction financing or bridge financing which pays for the construction of the facility until start up.
• Long Term Financing - Usually a long term note (loan) that results from converting the construction financing upon completion of the project.  It becomes your monthly debt service not unlike a household mortgage.
• Equipment and Fixture Financing - Sometimes this can be rolled into the long term note but most often is paid for in cash and used as collateral to secure the long term note.  This is usually because the funding source regards equipment’s service life and depreciation schedule as five years and will not finance its value on a long term note. 
• Reserve Financing - Used for contingencies. This is usually a condition of the long term note that requires a specified amount on hand in an account at all times.  This gives the funding source confidence that your business is successful if you are not in need of the reserve to operate.
• Operating Capital - Feeds your business until it is up and running.  Sometimes the funding source will finance your operating capital and sometimes they will not.  Nonetheless, you will need it. 

There are typically three ways to finance a car wash project:

• Traditional bank financing
• SBA Loan
• Other People's Money