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Financing a Plow (business)

Discussion in 'Commercial Snow Removal' started by lodogg89, Oct 17, 2007.

  1. lodogg89

    lodogg89 Senior Member
    Messages: 412

    This is kind of an odd post, i know a lot of you own and operate other business (lawn, landscaping, sweeping,) that sort of stuff. I would like to set up another vehicle for plowing this winter. I really dont have the cash to pay cash for a plow. Has anyone financed a plow stirctly on business credit, or leased one. Everything business is seperated for me, i buy all of my mowers and other lawn equipment on bus credit, but havent found anything for a plow yet. Any ideas?
  2. yamaguy

    yamaguy Senior Member
    Messages: 556

    Try a payday loan store. It's a good way to get money fast!
    Last edited: Oct 17, 2007
  3. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    I knew a guy that leased a plow.

    When I worked at an installer we used to finance them through sheffield all the time. I would think though that you could get some sort of line of credit or small loan from a local bank if you have a relationship with them. Plows aren't cheap but in the big scheme of things they aren't that much.

    FYI I buy most of my new stuff with AMEX for the points and then if I need to finance it I do so through my line of credit.
  4. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,034

    As long as you have good credit, you can finance anything. Our Boss dealer has a blade in there showroom that say's LEASE ME.
  5. lodogg89

    lodogg89 Senior Member
    Messages: 412

    I dont mix personal and business purchases though. My truck is used for both, but my next one wont be. Just too much risk involved. I have good business credit, but i have never seen anything really for plowing thoughl.
  6. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,866

    Instead of always financing through companies available at your equipment dealers, get a working relationship with a local bank.

    I just bought (3) new plows and a backup truck ($10k) and walked in, talked with the bank president, told him what I was doing, that I wanted to finance it all for 3 years and he said okay, it'll be at 8% interest.

    He also asked me if I absolutely needed the equipment, and I honestly said "no, not right now, but I'm also at a crossroads with my business where I need to expand, and the equipment I'm buying is what's in high demand in my area (8.2 Boss V's, plow truck with less than 75k miles for $10k with plow) so I know I can resell at what I'm putting in, or darn close anyways and not take too much of a hit.

    He said that's fine and I signed the papers 30 minutes later.

    Anytime I want to buy something, they're there to back me up.
  7. Peterbilt

    Peterbilt Senior Member
    from IA.
    Messages: 745

    I finance one of my Poly Boss blades last year. Paid it off after 2 months.

    I had to finance because my cash flow was running short due to 3 large jobs being cancled in the same week. I would have rather paid cash out of pocket, But oh well

    My 2 "new" boss plows are lease returns. Got an unbelieveable deal on them.
    These I paid cash for.

    So yes you can say that you have now heard of someone that financed a plow.

  8. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    I agree with the bank relationship. Very important. I do all my banking at the same place now for 16 years. Before that my parents did and still do bank there.

    I don't really understand the risk point. People think and are told that they can seperate all this stuff and the truth is that you can't. Wide examples but look at the ENRON execs. or here in CT we had a trucking company cause and accident, then claim bankruptcy. The creditors got all teh business goods and then went after all the owners personall property as well. It was a corporation etc etc blah blah. Bottom line is it does not matter.
  9. lodogg89

    lodogg89 Senior Member
    Messages: 412

    actually you can though the reason these people get nailed is because you have other business items you have finance on personal reports. They may have a business CC that is linked to their personal and that is how business debt collectors nail you. All of my mowers and such that business owns, the business Tax ID number is what is used to purchase these things, not my SS#

    You guys that have financed plows, are you using your personal info, also with the bank, did you walk in and say hey id like to buy some stuff here is my SS#, or are you using a TIN or a DNB number
  10. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    many banks require a owner or partner to personally sign beyond a llc or corp sig. too many llc's went bk and they didnt get their money back. after a length of time your business will build its own credit however that usually only flies with supplier/vendors. best bet is having a relationship with a local bank but not using them. i was setting up a hundred k line for a construction company and working on another for a landscaper. in both cases the current debt which was tractors, trucks etc. was financed cheaper through the manufacturer with the landscaper having his equipment on not interest for x amount of time with quick payoffs. find a bank that charges no interest. lol. what john deere or kubota or ford couldnt do for them was give them a blank check that they could revolve so i guess banks do have their use.
    keeping personal and business separate is hard but the more times you blend that line the easier it is to make you liable in a lawsuit even if you have a llc. normally gross negligence has to be proven first unless you cross that personal/business line too many times. jmo
  11. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    It is an exteme and yes something like gross negligence would have to be proved buy still its shows that you can NEVER seperate everything. I have seperate numbers and business and personal credit (both with the same bank), but it is still my company, company assetts are seperate (I drive a company truck) but it doesn't matter. If I screw up, I risk losing both business and personal. Even guys who put stuff in wife's name etc. It doesn't matter. I have seen it happen many times with big and small companies.
  12. T-MAN

    T-MAN PlowSite.com Addict
    Messages: 1,363

    Honestly the day and age of being "protected" from any liability in your small business are over.
    Short of a corporation, with executives, and employee's (not family) You are Your business. I have watched many small potatoes who were incorporated loose there homes and equipment that was in there wifes or parents name. No matter what, you still carry some liability.
    Your not as untouchable as you may think.

    As far as credit, Shefield has forms right in the CPW catalog for a short term loan. You can just fax it in and wait for approval. I have a line of credit with a Wells Fargo, its strictly a business account, set up for business's. I have a separate check book from them. I dont use it much, but it has saved the day more then once when cash is trickling in.
  13. lodogg89

    lodogg89 Senior Member
    Messages: 412

    has anyone seen anything new for this lately, i just got another lot that is going to take 3-4 hours in itself, and i am over booked already, i could sub it out, but if this worked out, could be a good money maker,.
  14. SnowDozers

    SnowDozers Member
    Messages: 86

    We usually buy ours on account and just pay as we can. We usuallly spend 5 grand in Pallet salt at startup and 5 grand on a plow or spreader at startup so they don't mind giving us credit.

    MIDTOWNPC PlowSite Veteran
    Messages: 4,425

    I agree with the bank relationships, however one thing you want to also look into is when is that person going to retire. Ask them some questions. Honestly I had a banker retire on me and it was early as far as I considered and the replacement was brutal.

    With so much going on with banks right now and problems with mortages and houses, bank managers are going to move around a bit or weather the storm under their desk.

    Sometimes banks don't like to lend on those types of items however one thing you can look into is a business visa, they are revolving and usually a lower rate then anything else except a secured line of credit. Remember each bank is like a store, they are all selling something different, this month they may need to "sell" some visa's next month some mortages. Some dealers that sell larger equip finiance, ie bobcat has 0% right now, but as you may know you will in most cases get a better cash discount, so using showing up with your own pre arranged credit may save you enough on buying that item cash to even up on the interest you will pay. You may come to find out that "a bank is only a place that will lend you money if you can prove you dont need it"
  16. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,866

    That's what happened to me. Ended up getting enough work to finance another truck / plow for $14k. 3 years it's a total of about $500 / month. 1 account covered the cost of the loan. 1999 Dodge 2500 with 70k miles, new Boss 8.2 V. The truck was $10k with an 8' western that I sold for $1500.
  17. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    well if anyone needs financing up in the maine area let me know. i have a minimum of a hundred k but i can go to a million plus. no guarantees but ill see what i can do.
    just had to throw this in. lol :D

    that would be one expensive plow now wouldnt it.... haha.
  18. Banksy

    Banksy PlowSite Veteran
    Messages: 3,113

    It better be made of gold!

    I could have made getting a plow easier by getting a loan. But I'd hate to look at that thing in August and then send the check off for it. Plus it's a bigger gamble here whether or not you'll eve get to push. So I pieced my Minute Mount slowly together. Ebay can be a great place to get parts cheap and the guy I plan on subbing for gave me big Minute Mount parts in exchange for some body/mechanic work on his trucks.
    Last edited: Nov 17, 2007
  19. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    yes. i saw that. im very impressed. not only with how it came out but also with how frugal you are and your display of work ethic and effort. looked better than many new plows to me. probably because i understand you put it together yourself and that is worth a lot. :)
    its nice to see. as far as taking a loan for a plow i understand your reservations. some people do finance them and that is understandable to. me personally, i try to pay cash for everything but realestate. if i cant pay cash then i will pay off the debt as soon as possible. i also put a couple hundred bucks on a credit card which i pay off put back etc. just enough to keep the trade line current. realestate of course is a bit expensive to not borrow money for. least around where i am it is. thing about debt. you dont own it, it owns you. have to be careful not to use it unecessarily but use enough to keep you current in case you need to use it.

    congrats on the plow
  20. Snowbrdr360

    Snowbrdr360 Senior Member
    Messages: 253

    I bought a new blade last year from CPW and due to cash flow issues had to finance it thru Sheffield Financial. Paid it off after a couple months, but yes like everyone has said it can easily be done