Equipment financing/start-up

News from Powder 365, New products, Specials
Detective Coating
Posts: 1820
Joined: Sun Dec 11, 2011 5:39 pm
My Location: Colonial Heights, VA
Location: Colonial Heights, VA
Contact:

Equipment financing/start-up

Post by Detective Coating » Sun Oct 07, 2012 7:29 pm

I've been eyeing up a new building thats 2300sqft and my "fridge" oven simply is not going to cut it. Essentially I am going to need to upgrade everything. I will be picking up commercial accounts once I do this which is why there is the need for the space and equipment. Just curious as to what you guys have done as far as financing everything when you took the plunge? Most banks want nothing to do with equipment as they don't want it if I wasn't able to pay the loan back. Equipment leasing from the suppliers is just plain ridiculously expensive from what I have seen. Any other routes to go with this? Obviously I don't have 50k to buy it all in cash though that is around the number that I am looking to borrow to purchase what I need. I always get to this point and have a huge mental fight in my head about where/how to get the money and I continue to put it on the back burner but I'm tired of dicking around when I know I can do it.
http://www.detectivecoating.com" onclick="window.open(this.href);return false;

User avatar
redlinecoatings
Posts: 1889
Joined: Thu Jan 13, 2011 11:21 am
My Location:
Location: Sudbury, Ontario
Contact:

Equipment financing/start-up

Post by redlinecoatings » Sun Oct 07, 2012 8:56 pm

Put down what you can. Line of credit for the rest. Or look at a small business loan or check to see if there are any grants.

User avatar
Nhendren
Posts: 190
Joined: Mon Feb 13, 2012 11:31 am
My Location:
Location: Saint Peters, Missouri

Re: Equipment financing/start-up

Post by Nhendren » Sun Oct 07, 2012 9:04 pm

As I have been there most of my suggestion is going from home to a shop, 1st suggestion is to find an investor/business partner with the funds in cash avaible, silent works best, for example if we would have financed our oven and not pay for it the payments would be more then my house payment, investors are more flexible then a bank miss a payment or 2 and its all over, you needs more then just the money for start up I would say 10-15 to get you to the point your profitable, make sure you have your own savings built up to cover you bills, don't expect to pay your self for about 6 months even working full time

Like I said this is things I have experienced trying to go bigger, if you already have a building disregard some of that.

a pinhole can sink a your ship
Nathan,
Gateway Powder Coating
Gatewaypowdercoat.com

PowderWorx
Posts: 311
Joined: Sat Sep 03, 2011 7:50 pm
My Location:
Location: Kennewick, WA

Re: Equipment financing/start-up

Post by PowderWorx » Thu Nov 08, 2012 5:00 pm

Just to give some insight I am planning on doing this in two years when the wife is done with school and making enough to support us for a while. My plan as of right now is to build business credit using my good credit as a personal guarantee (doesnt show up on personal credit report unless you dont pay). So far I have a Chase Ink and just got approved for an Amex Plum Charge card. Ive also opened an account with Sherwin Williams and am getting a Grainger, Uline, and NIC Industries account next. Basically all of those help establish your companies credit rating. I use the Ccards for all my purchases and pay as I go, but only use the accounts with the various companies as credit builders, buying 1 thing on them every once in a while and paying them off right away.

Next after all that when i start to get close to going out on my own full time I'll write up a really good business plan using one of the various business plan programs available or one of the templates you can find on the internet.

I'll also have two years of legitimate financials by then as well which is what the bank is going to require. You take all of that and go see if you can score a small business loan. You can also get one through the SBA as well, who essentially guarantees the loan to the bank providing it ( I think). The business plan will show the bank you have done your research, know what your doing, and have a viable plan to succeed. The accounts you've had for a while in the business name help show you're responsible and can be trusted etc...

Anyways thats my plan hope it helps and we'll see if it works.I think thats about the only way it's possible unless you have some cash on hand such as a 401K to dig into, home equity, huge line of credit on a card, or like others have said partner with someone who has money. I just dont like the partner thing because well then it's not my business anymore and thats the whole reason I am starting the business.

User avatar
alleykat
Posts: 818
Joined: Fri May 20, 2011 2:38 am
My Location:
Location: Texas

Re: Equipment financing/start-up

Post by alleykat » Mon May 20, 2013 6:28 pm

I started with my Ted oven,eastwood gun & blast cabinet paid cash.From there I kept revolving the earnings.I don't owe anyone.If someone would finance me for a big oven I'd prob go for it.

LowISaLifestyle
Posts: 22
Joined: Fri Nov 02, 2012 6:53 pm
My Location:
Location: RIchmond Va
Contact:

Re: Equipment financing/start-up

Post by LowISaLifestyle » Sun Jul 07, 2013 7:44 am

I need some one like you, where are you located? i have been in the military just stacking my funds. I want another business, but i dont have much experience in PCing i am learning and i love everything about it im still a Machinery Tech in The CG for another year then im out... i will be attempting on my own also unless i can find a partner... Good luck man!

User avatar
duke46
Posts: 11460
Joined: Thu Jun 03, 2010 9:32 pm
My Location: East Coast NC
Location: New Bern NC
Contact:

Re: Equipment financing/start-up

Post by duke46 » Sun Jul 07, 2013 8:29 am

Keep one thing in mind if you are going commercial and have to get business lic and safety inspections and that is every thing needs to be UL approved to pass inspections.

If you live in the county and have enough property to put up your own building and there is no zoning then you don't have to put up with that. Same true for any building in the county that is not zoned. Just something you need to check on before you find yourself in trouble and have already invested to your limit and now they want you to have an expensive spray booth.

We don't need them but they think we do because dumbass sellers calls powder PAINT It is not a damn liquid and you don't have to mix chemicals with it so it will dry. Like when someone says PAINT WITH POWDER :evil:

As one of the guys has said about building your credit up. Get your self a business name and register it with the county or city so it is your name and get you a phone with the number of your business either cell or landline. It does not really have to be one with your company name tied to it because that cost a lot more. Then get ready for the dag calls from credit people and banks and so called loan sharks and companies wanting to sell you tools and equipment. They sometimes offer you a good deal on name brand items but find out first how long they have been in business and get some info from them so you can check them out. The tool people will finance to you most of the time or sell it to you on a 30/60/90 day pay in full deal. If you can use it then that is also a way to build up your credit and if you want a new Gema or Wagner latter then they will work with you if you have a good score established.

One of our guys just got turned down by Gema even though he had been trying his best to build up his credit score it was just not enough and too new.

I get checks in the mail all the time ranging from 5K to 25K. Now if I did put one in the bank would they honor it but most you have to call first to get final approval. Just watch your self. And press 1 for English when someone calls you and can't understand a damn word they are saying :lol: :lol:
All I have said is said just for meanness so I don't have to argue with anyone!

http://www.pcitdad.com" onclick="window.open(this.href);return false;

User avatar
crash32301
Posts: 308
Joined: Thu Feb 21, 2013 8:54 pm
My Location: boise
Location: garden city Idaho
Contact:

Re: Equipment financing/start-up

Post by crash32301 » Sun Jul 07, 2013 9:56 pm

You have a couple years right ? look for and find deals on used equipent and pay cash why go into debt if you have the time , you don't need the lastest and greatest to get the doors open , upgrade when you have the cash to do so thats what I have done and its working great so far, the only payment I have everymonth is for my shop space , right now I'm looking for a oven large enough to do car frames in and I will pay cash when I purchase , credit will choke you in the end , pay cash keep all of your hard earned money
Mark
Boise Idaho

xtrememeasures10
Posts: 221
Joined: Mon Jun 11, 2012 10:50 pm
My Location:

Post by xtrememeasures10 » Sun Nov 24, 2013 11:57 am

Agree with crash. Borrowing only increases risk, reduces profits and when unexpected expenses come up it leaves you having to borrow more or close your doors. Debt free is the way to be. I have to say having no debt I'm able to save about 65% of my income. When i buy a house cash it will be around 90%. I'd rather be paid for my hard work than be a rat in a wheel working to pay the bank or a partner. The only ship that won't sail is a partnership.

Sent from my Galaxy Note 3

Detective Coating
Posts: 1820
Joined: Sun Dec 11, 2011 5:39 pm
My Location: Colonial Heights, VA
Location: Colonial Heights, VA
Contact:

Equipment financing/start-up

Post by Detective Coating » Sun Nov 24, 2013 1:51 pm

For what it's worth, I ended up saving and selling off some car parts and paid cash for my booth and oven and will do the same when I buy my gun. The main reason for doing so is so I can actually have a paycheck instead of paying back monthly on a loan which takes out of my check. Yeah it sucks waiting a bit but if you're gonna make it work you can wait the extra time and work with what you got for the time being.
http://www.detectivecoating.com" onclick="window.open(this.href);return false;

Post Reply