jgoral76 14 Report post Posted March 17, 2006 I have been thinking of appling for a business loan through a finance co. but would like to have some opinions b4 i do please all are welcome. perhaps i wshould ask family first. O the reaSON BEING I WANT MORE EQ SO I CAN EXPAND. Share this post Link to post Share on other sites
0 JFife 14 Report post Posted March 17, 2006 My personal opinion, I don't think you should be thinking of expanding if you don't have the capital to do so. If you were wanting to finance because the interest rate was far lower than what you could earn with it invested, that would be one thing......but, since you are thinking of hitting up the fam I am assuming you don't have the liquid. Bust it hard this year and try and put away 20K and expand next year. That would also allow you to take your time and look around and buy used, at the end of the year when everyone is going out of biz. Share this post Link to post Share on other sites
0 squirtgun 122 Report post Posted March 17, 2006 Just be sure to check the % they will be charging.Some companies get kind of crazy and charge outrageous rates.Here in my part of Ga. there have been several comanies that were shut down for charging upwards of 1000% interest. There were several businesses that used these companies to finance equipment and expansions that went belly up trying to make the payments. Share this post Link to post Share on other sites
0 Jeff 232 Report post Posted March 17, 2006 Why dont you lease from a good dealer/distributer and lease the equipment. They have some decent leasing companies and once its paid you can own it for a dollar or 10%, they have different plans You want to expand how, do you already have work to expand or do you want to target certain kinds of work and you dont have the equipment to do this type of work I like to have the work then buy or lease Good luck JL Share this post Link to post Share on other sites
0 PressurePros 248 Report post Posted March 17, 2006 If you know your income will increase exponentially from a capital influx I say go for it. No large business would be where it is without leveraging. Choose your source of capital wisely and have a plan B. Where would the income be generated to cover the loan paymens if you were to become incapacitated? Make sure you have disability insurance. Also keep in mind that the first phase of expansion to additional crews rarely generates that much more income. If you don't mind me asking, what are your expansion plans? Share this post Link to post Share on other sites
0 jgoral76 14 Report post Posted March 17, 2006 want to get into fleet washing and some commerical. just doing res now but my eq is only for res so thats why i feel i need to do what i said. I can continue doing what i am doing and be ok but want to really make more money also go after a specific area, perhaps my drive need to slow down alittle, just getting antse and want more, and do more sick of working in plant. thanks Share this post Link to post Share on other sites
0 JFife 14 Report post Posted March 17, 2006 ahh, so you are basically still just getting started. I thought you had a full crew going and needed to expand to keep up, and that is why I was curious why you didn't have some capital. Make this a personal decision. Are you a risk-taker by nature?? Does the thought of being in debt to someone hinder your free spirit?? I don't think borrowing is for everyone, you have to be of a certain personality type to make it work, and when I say "work", I mean be able to enjoy life and live it full, not in fear. Or course, when I say "borrow", I mean for things other than a home, which most of us have to borrow for. Share this post Link to post Share on other sites
0 jgoral76 14 Report post Posted March 17, 2006 Risk taker heck ya, in debt to someone, are.nt we all? I think the small amount i need is nothing thats gonna keep me awake at night. plus if this fails which i won;t let it, i still have this great auto job to lean on. I want 1 day to employ a crew, could have done that already if i had the right eq, but glad i did not because my knowledge of this biz was that of a green newbie not to say i'm like jeff or anyone of that nature, just saying i can make this work but am a little cautios as to where i shop for cash. thanks Share this post Link to post Share on other sites
0 Deck Guy 14 Report post Posted March 19, 2006 You talk of a finance company...why not your bank that you already do business with? I operate as a sole propriatorship, so I can just use my line of credit if I need something. Generally, the equipment costs associated with this business are not that great though. If you need less than 10K, I would just stash away some profits, but it outright when I could, and stay in the black. Share this post Link to post Share on other sites
0 jgoral76 14 Report post Posted March 19, 2006 good advice Larry I think I will just stash plus grandpa says he will help out with something if needed thiugh I hate doing that with family. I checked into the bank thing banks want everything including my blood type thats why finance co. looked good but thanks anyway Share this post Link to post Share on other sites
0 JFife 14 Report post Posted March 19, 2006 I agree about the bank....I was gonna borrow a small amount earlier this year just to get established at my new bank, etc., but it was such a pain to mess with, it just wasn't worth it. Now, when I need something I don't want to pay cash for, I get a credit card. As opposed to signing your life away at the bank, putting up collateral, and messing with the rediculous amount of work, just spend five minutes on the phone with a guy from India and get a 15K credit card in a couple weeks, at 0-5%. Share this post Link to post Share on other sites
I have been thinking of appling for a business loan through a finance co. but would like to have some opinions b4 i do please all are welcome. perhaps i wshould ask family first. O the reaSON BEING I WANT MORE EQ SO I CAN EXPAND.
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