business loans?

[WoodCutr]

im looking at a small knuckleboom crane, $68000, need a loan of atleast 80K to get that and a grapple saw
been in business officially for a year and the bank wants 2-3 years minimum, how do you guys go about this?

where do I start? never got a loan before

 

[lumberjack]

What kinda grapple saw can you get for $12k?

Two years of financials can sometimes be worked around with history and down payment.

How are you moving debris?

 

[WoodCutr]

What kinda grapple saw can you get for $12k?

Two years of financials can sometimes be worked around with history and down payment.

How are you moving debris?

ive got the math a little off, meant to say 90K
the truck has a 75ft IMT drywall boom, and a 60 yard box on it to haul brush, currently has a brush grapple on it but has hydraulics for a grapple saw ready to go by swapping out the brush grapple
on the business side there is no loan history, only payment history I have towards credit is my dump trailer at $500 a month
and I cant do a huge down payment currently, id like to put down atleast 15K but that will be a while before I can

 

[lumberjack]

There are decent chances a $68k truck will have $15k of repairs at some point.

I understand the attraction, but it's not what I would do.

$90k at 9% for 4 years would be a $2240/month payment. When the truck that does all of your cutting and hauling goes down, so does your income.

 

[WoodCutr]

There are decent chances a $68k truck will have $15k of repairs at some point.

I understand the attraction, but it's not what I would do.

$90k at 9% for 4 years would be a $2240/month payment. When the truck that does all of your cutting and hauling goes down, so does your income.

not my only truck so when it goes down its ok ish
$2240 a month is totally doable for me, 9% is a little higher than id like but still not terrible really

ive got the bucket truck and chipper as a backup, plus a pickup and dump trailer + skidsteer (what ive been getting by with while my bucket truck was down) so really 3 whole equipment setups if I get the grapple truck

 

[SkwerI]

What is your FICO and what kind of credit do you currently have? In order to get big loans you need a history of repaying smaller loans.

I started out with a 1000 limit credit card from my credit union at 17 years old. Through a lucky break (responding to an ad for hearing aids) I ended up with a preapproved app for an American Express Gold card at 19 years old. Paid the $75 per year fee for that, and then got preapproved notices for other cards. Kept building my credit availability and at 31 I finally sneaked my way into my own house (I had $67 left in my checking account when I left closing). 12-13 years later when banks were handing out loans like candy (2005) I refinanced my house and bought my first bucket truck. At that time I had about $30K available in unsecured credit (credit card limits). After that my credit went up by leaps and bounds. 3 years later I bought a $57K bucket truck on a signature at 6% interest. Within 5-6 years I had multiple credit cards with $15-20K limits with rates as low as 8%.

 

[WoodCutr]

I dont have anything credit related connected to my business, whatever the bank looks up under my name comes up with nothing, I know there are some companies that will do equipment financing, might check in with some of them

I dont even have a credit card, only a business debit card

 

[SkwerI]

Well you need to build some credit. Personal as well as business. First step is going to your bank and asking for a credit card. Talk to your banker about how to build credit. You are a long way away from getting a business loan.

 

[WoodCutr]

thats what I figured
same deal with my crane company, currently all we get to use is the 30 ton, they are trying to get a 33 ton but the bank says no

 

[Mellow]

Can you get a Home Equity Line of Credit?

 

[lumberjack]

Can you get a Home Equity Line of Credit?

He's some variety of young young, I don't think there's home equity to borrow against.

 

[WoodCutr]

He's some variety of young young, I don't think there's home equity to borrow against.

Exactly