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  • Hey all, just changed over the backend after 15 years I figured time to give it a bit of an update, its probably gonna be a bit weird for most of you and i am sure there is a few bugs to work out but it should kinda work the same as before... hopefully :)

Loans--where are you getting them, etc?

Has anyone found a credit union/bank that will loan 100% of what you need? One of the credit unions I tried today said they would only give 75% of the purchase price. If that's standard for banking then I will either have to go to the SBA (pain in the butt) or do equipment leasing (can't pay off early like I am planning.)

Matthew
 
I'd never take out a loan for something like equipment if I wasn't already making money in that market. It's one thing if you have a successful rental business going and you want to expand it but don't want to pay much cash, then I can understand it, but otherwise that's really risky.

Definitely paying for the RED with cash.
 
I'd never take out a loan for something like equipment if I wasn't already making money in that market. It's one thing if you have a successful rental business going and you want to expand it but don't want to pay much cash, then I can understand it, but otherwise that's really risky.

Definitely paying for the RED with cash.

Well, my company has been making good money this year but I still have to pay my salary and the current equipment that I have finish paying for. Every new company has got to start with some kind of capital--whether it's investors or a bank loan.

I have the clients for it, I just don't have $60,000 laying around right now--but am working towards that. I would be more worried if I needed to borrow $60,000 for salaries--aka then I would have nothing to sell off if something went bad.

Not to be mean, but call me when your actually buying a RED.

Matthew
 
I'd actually rather not to a lease to buy as I am planning on paying it off much quicker than the full term of the loan. This is what I am setting up with suntrust (just thought I'd let you all know since I started the thread...)

Am going ahead and getting a $60,000 line of credit. Buying everything that I need when I need to buy (aka, if I have to jump on a deal, I will have the money to go ahead and get it, plus I can start paying things off.) I will also be able to send RED an instant payment when I get my email from them. When I am "done" getting everything I need, I will contact suntrust and they will convert whatever I spent into a fixed loan. It's actually really a better way to go since it gives me more flexibility on buying things over about a 2 months period.

Matthew
 
How much changes when you convert the line of credit into a conventional loan? is the interest rate that different?
 
How much changes when you convert the line of credit into a conventional loan? is the interest rate that different?

What exactly do you mean changes? I believe that the line of credit is normal interest % plus prime I believe (I'm pretty sure it equals out to about 6.5%-7% plus 2% for prime=9%) So you pay a little more for the flexibility, but it sure as heck help me as I'm buying the RED, a MacPro, RAID, & Grip gear. Plus, I can have the money already to send RED when they contact me (whereas I was going to have the loan all ready to go, but would still probably have taken a week or two to get the money--and be paying interest!)

If you all want more info, I am submitting my paperwork next week so I can let you know exactly how everything works.

Matthew
 
Well, my company has been making good money this year but I still have to pay my salary and the current equipment that I have finish paying for. Every new company has got to start with some kind of capital--whether it's investors or a bank loan.

Not to be mean, but call me when your actually buying a RED.

Matthew

Allways be carefull with loans. It's a circle. Once you have a loan you may need to take work you don't like, that doesn't pay enough, so make sure you don't bite the dust.
Jim Jannard warned to be very carefull with money right now and he's very right. If you can't afford the Red buy something cheaper, do your work as good as possible, and make sure you awake tomorrow just as happy as today.
 
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