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Equipment financing

Discussion in 'Business Fundamentals' started by KevinCarter1988, Oct 9, 2019.

  1. KevinCarter1988

    KevinCarter1988 Junior Member
    Messages: 11

    Hey everyone!! We are in need of financing on roughly 5 salter and plows for trucks. Can anyone recommend somewhere or someone they have had a good experience with? We are located about 30 minutes outside of Chicago. Thanks in advance!!
  2. Hydromaster

    Hydromaster 2000 Club Member
    from 406
    Messages: 2,833

    My “savings and loan” Institution has always been good to me.
    From signature loans,home mortgages,vehicle loans, collateralized loan & 90 day notes.

    The hard part is did your business make enough money over the last few years to get a business loan or will you be taking out a personal loan for your business ?
  3. sven1277

    sven1277 Senior Member
    Messages: 557

    Try Sheffield financing also. They specialize in equipment financing
  4. framer1901

    framer1901 PlowSite.com Addict
    Messages: 1,074

    Then do the real math and see if you're working just to own a five year old worthless piece of equipment and making the finance guys money.
  5. OP

    KevinCarter1988 Junior Member
    Messages: 11

    That would be very incorrect framer. We are blessed with some great accounts.
  6. Philbilly2

    Philbilly2 PlowSite Fanatic
    Messages: 12,432

    If you are blessed with these great accounts... why the need to finance a few salters and plows?

    Where has the capital already been spent/invested?
  7. OP

    KevinCarter1988 Junior Member
    Messages: 11

    Ill send you my accountants info if you would like to talk to her about my personal finances. We are doubling in size this year and have invested our money into other avenues. I am not here to discuss my finances with you simply asked a question thanks!
  8. fireside

    fireside PlowSite.com Addict
    Messages: 1,608

    I will ask a question if you are doubling in size how are you running the business on limited cash capital? Financing plows is very simple to be honest! In my area. There is really only two ways to do it. Just saying if you are growing that rapidly this is an easy problem
    Mr.Markus likes this.
  9. framer1901

    framer1901 PlowSite.com Addict
    Messages: 1,074

    Been there done that. Great accounts today can be someone else's tomorrow due to anything.

    50k from Sheffield or some leasing company will cost you 15k after 3 years. Don't give the Sheffields of the world that kind of money - If you must finance something, do trucks at 0%.

    Doubling in size on the financed dime is a lot of money moving thru the checking account and very little going in the mason jar.

    Instead of talking with your accountant, find a business mentor, almost anyone can enter crap into Quickbooks and they could care less if you're around tomorrow.

    All the time I have, pool is calling and gotta dive early in the morning, just trying to give advice I wish I had ten years sooner!
    BUFF, m_ice, rick W and 2 others like this.
  10. Philbilly2

    Philbilly2 PlowSite Fanatic
    Messages: 12,432

    No thanks, I'm bizzie... Thumbs Up
  11. Randall Ave

    Randall Ave PlowSite Fanatic
    Messages: 10,955

    If you are well established, go to your bank. You can also go to the dealer you are purchasing the equipment from, they should be able to get you financing, but the rate will probably be high.
  12. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 11,050

    Ive yet to see a plow or salter dealer that doesnt let you pay interest free instalment payments over the first 6 months, and be done with it.
  13. rick W

    rick W Senior Member
    Messages: 386

    Maybe i am just odd.. but in 30 years plus, i have never once bought a plow or a salter on credit. Makes 0 sense. Big iron or trucks sure. Chump change for this kind of stuff...you have no business buying if you cant cut a cheque. Just saying..that is silly. Good luck, hope it all works out.
    plow4beer, BUFF, jonniesmooth and 5 others like this.
  14. Rubber City Landscaping

    Rubber City Landscaping Member
    Messages: 81

    I financed my plow trough western financial. Who do you bank with. Go to your local SBA office they can help. They got me in touch with a nonprofit lending organization that lets me take loan out with projected income based on contracts
  15. jonniesmooth

    jonniesmooth PlowSite.com Addict
    Messages: 1,793

    I just want to share this. We bought a new house this year. In the process we found an on line amortization calculator.
    If you borrow $165,000 at 4.5% interest and pay it off in 30 years your payment is $836/month, and you will pay $135,971 IN INTEREST.
    If you use the same numbers and pay it off in 10 years, you pay $40,000 in interest, with a monthly payment of $1700.
    Here's what I've learned from nearly 30 years of snow removal.Never borrow money for a "snow only" piece of equipment. Actually, I've learned to never finance any equipment, and I know that makes me strange.
    I really wanted to buy a new tractor this fall, 33-39 hp, somewhere in the mid $30's with a loader and blower. Our house hasn't sold yet, guess who's not getting a $30k tractor. I'm looking at adding another 1025r, that I can pay cash for. Not putting the $12k down and financing the balance on the $35k one.
    But, what do I know? Good luck.
  16. Philbilly2

    Philbilly2 PlowSite Fanatic
    Messages: 12,432

    I m lost here... what does your house have to do with a tractor? Are you buying them personally and renting them to your business?
    BUFF likes this.
  17. jonniesmooth

    jonniesmooth PlowSite.com Addict
    Messages: 1,793

    I sell the house. I don't owe any money on the house, so the money is mine. I pay off 1/3 of the new house and the money that's left over I get to do what I want with.
    If I want to buy a tractor, what difference does it make to you?
    I am my business, I have multiple sources of income. If I want to take money from one to use in another, what difference does it make to you?
    The lawn business has retained earnings specified for new equipment of $14k, not enough to buy a $35k tractor. What difference does it make to you if I take $20k from the sale of my house to not have to borrow it from someone?
  18. Philbilly2

    Philbilly2 PlowSite Fanatic
    Messages: 12,432

    Pump the brakes...

    I was simply saying that I was confused as you were talking about purchasing a piece of equipment for business, then you started talking about a personal asset (the house) so I was asking if you were looking for the tractor for a personal asset or for the business.

    You seem like your are slightly educated in your money management... but not having a corporate veil between your personal assets and your business assets is financial ruin if something happens.

    You can do whatever you want I could give a rats... just don't ever say no one ever told you it was a dumb idea
  19. jonniesmooth

    jonniesmooth PlowSite.com Addict
    Messages: 1,793

    Thanks. We are considering options as we grow, possibly a LLP. For now we have upped our liability insurance to protect us if something major were to happen. At least we have gotten to the point where we don't have to take every job that comes our way, so we can at least weed out the obvious high risk ones.
  20. Philbilly2

    Philbilly2 PlowSite Fanatic
    Messages: 12,432

    Two things:
    Lawyers and doctors can eat threw liability quicker than you would imagine. Once they get done with your insurance, they will start to come after your personal assets if you are a DBA.

    If you choose turn hobby or DBA into an actual business:
    Just remember if you do assume a corp or LLC status... you are no longer "your business" You are now a shareholder or a member in a Corporation or LLC... so you will need to keep all of your "sources of income" separate or if something goes wrong and your on the hook for something, the lawyers will tear threw the blend of finances and deem them all one entity and your personal assets are no longer protected.