Just starting, loan or save

**Ed's Restoration** · 10-11-2008, 01:21 AM

:help:
With the economy in the state it's in, is it safe to go to the bank for financing?

**M Ellis** · 10-11-2008, 01:31 AM

It's an economic downturn world wide Ed not just in the States.
I would be saving every cent i could at this point in time to help you ride out the meltdown. I see by your profile you have equipment already so i would be treating that with all the respect you can muster to make sure they keep running.
Banks wont be throwing money at people without security IMO until the recovery is well and truely up and running.
So in answer to your question i would say NO its NOT safe to go to the Bank for finance.
Stay small and make the most of what you have.

Mick :yes:

**Dave Rampage** · 10-11-2008, 10:56 AM

depends on what you need. We will need some details to help you better.

Dave
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**BW Carpet Cleaning** · 10-11-2008, 03:15 PM

I don't know if you could get a loan. My business partner and I tried getting a loan and we both have very good credit. Business loans are tough right now and we were trying when it wasn't as tough. Maybe 4 months ago.

I found companies that would give lease loans but at horrible interest. I think the best we found was at 18% and all the way to 29%.

Finally we just ended up pooling our money together and avoided the financing.

**Rug Spa** · 10-11-2008, 06:19 PM

I would not go to the bank. We are going to be in for a real rough ride. I would also save as much cash as possible.

Do not waste money on things. if you do not need it.

**Rob Allen** · 10-11-2008, 10:49 PM

Americans spend way more money than necessary to live comfortably. If one lives frugally they can save and reach their goals. My father raised 9 kids on a small salary and owned his outright and saved a lot of money for each child. So perhaps rethink your stratagies.

**Ho0tz04** · 10-12-2008, 08:54 PM

I would take a loan out to get the absolute necessities to do the work, and run my business. Then save save save save!! And buy newer better equipment from profits. Take your profits and invest them into something so you're gaining some interest on it even it its for a short while. Don't take more than you can pay back.

A lot of times people think they have to keep buy new all the time. Maintain your equipment, and get the most use out of it, and maximize what you have before you even consider to buy more. Preventative maintainence is so important on equipment of any kind, and people take it for granted a lot. Their 5 year old machines break down seriously and they go and buy new. But they never changed oils on time and never cleaned out orfices and strainers ect.

**Richard Baldwin** · 10-13-2008, 05:05 PM

There is also the option of leasing, where you can save your money and still get the financing for what you need to be a competitive business. Weigh out all your options and learn as much as you can before you make your move.
Economy goes up, economy goes down, but there will always be lenders fighting over your hard earned loan payments, which helps keep rates down. Being new is the tough part, you have no way to prove to them that you make a decent income yet. Hopefully you have figured out a workaround for that. Best of luck!

**ACG Equipment Finance** · 10-23-2008, 01:40 PM

Financing for start up companies has never been an attractive option, that hasn't changed because of the economy. If you are truely starting out (less than two years time in business) we always suggest that it is in your best interest to finance as little as possible. In commercial lending we determine rates/lease factors off of risk. We plug the scenario into our matrix and it puts the deal into a tier system for us. Start ups are very risky endeavors and consequently are scored in our lowest tier.

With all that said, commercial finance has been effected to some degree by the economy but not as much as retail lending. I think I mentioned it in another post but the only thing i've seen change is that we are now required to submit deals with more information than was once requiried. There aren't as many "app only" deals anymore, now to provide funding we need to see three month bank statements, trade references and the like. Other than that its basically no different. Credit windows haven't closed and rates haven't increased.

In times like this, you gotta ask yourself "how is my business doing"? If your still thriving and you need more equipment... get it, conduct business the way your and and you'll make your payments. If business is slow... keep your old equipment and reup when the economy takes a turn again. Micro vs. Macroeconomics. :fencing:

**Mr. Slide** · 10-24-2008, 02:40 AM

Save! then buy a used turn key setup! take your time and you'll find a great deal when your ready!
Good luck!

Cheers, AL:burnout:

**JCoviello** · 10-24-2008, 11:00 PM

If the Cubans are still driving around on recycled/repaired 1950's era cars...I think we can get through another year or two on "old reliable".

Since my truck is paid off and the TM only has another year to go (and I might pay it off next Spring), I've resolved for now to just ride them so long as they have legs. *Almost* traded the whole rig in for a nice new set up and went 50K into debt.

Yea it sucks when your blower starts making noise or your truck starts pissing coolant out at your last job...but, I just think back to what my "elders" endured coming to this country and it seems like a cake walk in comparison.