# Equipment financing



## KevinCarter1988 (Jan 28, 2011)

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!!


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## Hydromaster (Jun 11, 2018)

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 ?


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## sven1277 (Jan 15, 2008)

Try Sheffield financing also. They specialize in equipment financing


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## framer1901 (Dec 18, 2005)

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.


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## KevinCarter1988 (Jan 28, 2011)

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


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## Philbilly2 (Aug 25, 2007)

KevinCarter1988 said:


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


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?


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## KevinCarter1988 (Jan 28, 2011)

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!


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## fireside (Mar 1, 2008)

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


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## framer1901 (Dec 18, 2005)

KevinCarter1988 said:


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


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!


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## Philbilly2 (Aug 25, 2007)

KevinCarter1988 said:


> 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!


No thanks, I'm bizzie... Thumbs Up


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## Randall Ave (Oct 29, 2014)

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.


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## Mr.Markus (Jan 7, 2010)

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.


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## rick W (Dec 17, 2015)

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.


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## Rubber City Landscaping (Nov 2, 2018)

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


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## jonniesmooth (Dec 5, 2008)

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.


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## Philbilly2 (Aug 25, 2007)

jonniesmooth said:


> Our house hasn't sold yet, guess who's not getting a $30k tractor.


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?


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## jonniesmooth (Dec 5, 2008)

Philbilly2 said:


> 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?


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?


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## Philbilly2 (Aug 25, 2007)

jonniesmooth said:


> 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?


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


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## jonniesmooth (Dec 5, 2008)

Philbilly2 said:


> 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.
> 
> ...


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.


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## Philbilly2 (Aug 25, 2007)

jonniesmooth said:


> 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.


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.


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## Randall Ave (Oct 29, 2014)

Philbilly2 said:


> 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.


I'm no expert, isn't he co mingling funds?


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## Hydromaster (Jun 11, 2018)

To get out of it, wouldn’t he need to lease it out to his business or sell it to his business?

Nevermind , he doesn’t have one.

I think,, hahahaha, you need to file your paperwork and register a business


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## kg26 (Feb 5, 2013)

rick W said:


> 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.


I disagree, you could be looking at a lot of business upside and need to scale right now.


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## plow4beer (Nov 16, 2016)

KevinCarter1988 said:


> 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!!


Why aren't you getting a business loan or line of credit from your primary bank you use? If your scaling up that quick, I would assume you've secured work, which in turn would give you something to take to your bank?


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## m_ice (Aug 12, 2012)

plow4beer said:


> Why aren't you getting a business loan or line of credit from your primary bank you use? If your scaling up that quick, I would assume you've secured work, which in turn would give you something to take to your bank?


That would be too easy


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## plow4beer (Nov 16, 2016)

m_ice said:


> That would be too easy


lol


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