How much does it cost to open a coin laundry in Malaysia?

A typical 10–15 machine self-service laundry outlet costs RM150,000–RM400,000 including machines, renovation, signage, and working capital buffer. With equipment HP covering 70–80% of machine cost and TEKUN covering renovation, you may only need RM40,000–RM80,000 in personal capital to get started.

Can I get a loan for laundry machines without operating history?

Yes. Equipment hire purchase is secured against the machines themselves — banks don't require operating history. This is the standard entry point for new coin laundry operators. You'll need SSM registration, a tenancy agreement, and machine quotations. Combine this with BSN Mikro MADANI or TEKUN for renovation costs.

Is a coin laundry business a good candidate for bank loans?

Yes — coin laundry is viewed favorably by banks because of its predictable daily cash flow, low staff costs, simple business model, and strong equipment collateral. Banks are increasingly familiar with the model. Established operators (2+ outlets, 2+ years) can access bank SME term loans for further expansion.

What is the best loan for a franchise dobi business?

Equipment hire purchase from the franchisor's preferred HP partner covers the machines (70–80% financed). For renovation and franchise fees, TEKUN (Bumiputera) or BSN Mikro MADANI are accessible without operating history. For larger franchise investments, bank SME term loans or GGSM2 cover the full setup package.

Can I expand to multiple laundry outlets with a single loan?

Yes. Once you have 12+ months of operating history across your existing outlets, bank SME term loans and GGSM2 can finance multi-outlet expansion. Prepare a consolidated P&L showing total revenue across all current outlets. GGSM2 is particularly useful as it doesn't require you to own property at any of the locations.

SME Loan for Laundry Business Malaysia 2026

Self-service laundry (coin laundry / dobi layan diri) is one of Malaysia's fastest-growing SME franchise categories — low staffing requirements, predictable cash flow, and a simple business model make it attractive to investors and lenders alike. Commercial washing machines are excellent collateral, and the low-overhead, cash-generating nature of coin laundry means banks have become increasingly comfortable financing these businesses. This guide covers every financing option for laundry business operators.

Quick Facts

What Laundry Businesses Need Financing For

Need	Amount Range	Best Product
Commercial washing machines	RM8K–RM25K per unit	Equipment hire purchase
Commercial dryers	RM5K–RM15K per unit	Equipment hire purchase
Full machine package (10–15 washers + dryers)	RM150K–RM400K	Equipment HP package
Shop renovation / fit-out	RM30K–RM120K	Bank SME loan, TEKUN
Franchise fee	RM30K–RM150K	Bank term loan, P2P
Token / card payment system	RM10K–RM30K	Included in equipment HP
Working capital (utilities, rental buffer)	RM20K–RM80K	TEKUN, BSN Mikro
Second outlet setup	RM200K–RM500K	Bank SME loan, GGSM2

Best Financing Options by Business Stage

New Laundry Business (First Outlet)

Option	Amount	Rate	Notes
Equipment hire purchase	RM80K–RM400K	3–5% flat	Covers 70–80% of all machines
TEKUN Niaga	Up to RM100K	4% flat	Bumiputera operators — renovation + working capital
BSN Mikro MADANI	Up to RM100K	~4%	All races — renovation, working capital
P2P lending	RM50K–RM500K	~1%/month	Fast approval for renovation and franchise fees

Established Operator (Expanding to Multiple Outlets)

Option	Amount	Rate	Notes
Bank SME term loan	RM200K–RM2M	5–8% p.a.	Need 2yr statements showing consistent revenue
GGSM2	Up to RM20M	BLR+2%	Government guarantee — no property required
Equipment HP (fleet)	RM400K–RM2M	3–5% flat	Bulk machine purchase for multiple outlets

Pro Tip

For a first coin laundry outlet, the most common financing structure is equipment hire purchase for the machines (70–80% financed) combined with TEKUN or BSN Mikro for renovation. This means you only need RM40K–RM80K in personal cash to open a fully equipped outlet costing RM200K–RM400K.

Commercial Laundry Equipment — Hire Purchase Guide

Equipment	Cost per Unit	HP Coverage	Tenure
Front-load washer (8–10kg)	RM5K–RM12K	70–80%	3–5 years
Front-load washer (15–25kg)	RM12K–RM25K	70–80%	5 years
Commercial dryer (10–15kg)	RM5K–RM12K	70–80%	3–5 years
Commercial dryer (25–30kg)	RM12K–RM18K	70–80%	5 years
Coin / card payment system	RM8K–RM25K	70%	3 years
Water softener / filter	RM5K–RM15K	70%	3 years
Full outlet machine package	RM150K–RM400K	70–80%	5–7 years

Pro Tip

Speed Queen, Electrolux Professional, and UniMac are among the most widely accepted brands for commercial laundry HP in Malaysia — their strong resale value and parts availability make banks more comfortable with collateral. Ask your machine supplier if they have a preferred HP banking partner for bundled applications.

Franchise Laundry Brands — Financing Profile

Malaysia's coin laundry franchise scene is active, and banks are increasingly familiar with the model:

Brand Type	Setup Cost	Financing Approach
Speed Queen authorized outlet	RM200K–RM400K	Equipment HP + bank renovation loan
Dobi Express / similar franchise	RM150K–RM350K	Equipment HP + TEKUN/P2P for renovation
Independent (self-branded)	RM100K–RM300K	Equipment HP + BSN Mikro or P2P
Mini-laundry (6–8 machines)	RM80K–RM150K	TEKUN + Equipment HP

Revenue Model for Loan Applications

Banks will ask how your coin laundry generates revenue. A well-prepared revenue projection strengthens your application:

Factor	Typical Range
Daily transactions per machine	4–8 washes/day
Revenue per wash cycle (RM)	RM6–RM15 depending on machine size
Estimated monthly revenue (15-machine outlet)	RM15,000–RM40,000
Monthly HP + rental overhead	RM8,000–RM18,000
Net DSCR	1.5–2.5x (very favorable for banks)

Documents Required

Laundry Business Loan Documents

SSM registration
Business bank statements (12 months, if established)
Tenancy agreement for laundry premises
Equipment quotations from machine supplier
Renovation quotations
Franchise agreement (if applicable)
Revenue projections or business plan (for new outlets)
Utility bills showing current operating status (if established)
Latest financial statements (if available)

Common Challenges and Solutions

Challenge	Solution
New business with no revenue history	Use equipment HP (asset-backed) + TEKUN for renovation — history not required
Cash-only revenue hard to verify	Install card or QR payment system — creates auditable revenue trail
Short lease on shop lot	Secure minimum 3+3 year tenancy before applying
Multiple outlets — banks cautious about over-leveraging	Show consolidated P&L across all outlets demonstrating positive cash flow
No property collateral for expansion loan	GGSM2 replaces property collateral — government guarantee covers banks

Frequently Asked Questions

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Disclaimer: Interest rates, loan amounts, and eligibility requirements shown are indicative and subject to change. Contact the respective bank or institution directly for the latest rates and terms. Last reviewed: January 2026.

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