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JCee
03-22-2006, 07:38 PM
Looking to put about $10-12,000 into the business.

If I could feasibly do it, is it better to pay cash, finance the machine, or get a small business loan? What are the pros and cons......

gce_ent
03-22-2006, 07:47 PM
Personally... I would pay cash. Most lenders would charge a horrible interest rate for a Cash loan of that size. I have a Commercial Lending company and see it all the time no matter what the credit is like. I have done some receivable lending where a company takes possession of your weekly/bi-w/monthly receivables and then pays you after they take their share. I would not go this route personally either because I do not like someone having their say before I have mine. SBA are low interest but just a pain in the arse to finalize. I have seen some get 500k quick and I have seen some get drug out on 25k. Either way it is such a small amount I would pay cash. I set a limit for myself. If it below that limit I pay cash and if above I get my wifes approval :rolleyes: and then I finance.

JCee
03-23-2006, 01:23 AM
Ha, Thanks

JJLandscapes
03-24-2006, 07:49 PM
Looking to put about $10-12,000 into the business.

If I could feasibly do it, is it better to pay cash, finance the machine, or get a small business loan? What are the pros and cons......


Pay in cash or finance if there is any 0% INT promotions and pay off within that time is a good idea.... ( If its no interest for 12 months then make 12 big payments and pay it off)

since u sound like u have the cash but might be hesitant to spend 10 grand at once even though u can afford it

gqnine44
03-25-2006, 12:50 PM
Cash! I didnt even read any more than the title. That is the answer!

Fantasy Lawns
03-25-2006, 03:01 PM
Pay Cash .... WHY ??? Really Why would one pay cash if ...n this is the if .... you can get it on a credit card or have Sheffield loan it

HOW does one expect to get good credit if you don't use credit ??? How you ever think your gonna get a bank loan let alone an SBA loan .... I just got an SBA loan this year .... it was like buying a house ...but I got the loan not really fore financial need BUT because I am developing my business into a sell-able commodity .... when I sell my business .... ALL the equip is paid fore .... I have established clients with cash flow going back 10 years ...n that this year ....when I sell in maybe another 10 .... I'll have 20 years of financial records .... the Inc will n does have good credit

Cash ...ya I bought a Dixie out right last summer .... like $9800 n ya 2 years earlier a new Walker with $10k ... but I can afford it ... I'm established have good credit .... so if I need quick $$ in a pinch I have it .... my credit percentage it 7.9% .... so on $10k I'm paying bout $800 per year to use their $10k n I'm building credit as well as having an additional tax write off

gce_ent
03-25-2006, 07:08 PM
Pay Cash .... WHY ???

If the goal was to establish credit then the question would never have been brought up.

10k Financed does more harm to credit than good from what I have seen many times. Large loans with good payment history does very good for your credit.

M RASCOE&SONS
03-25-2006, 08:01 PM
IMO if it was for say a lawn mower ,i would look into see if they are doing any premotions like no payments until such and such a time or maybe they are running a special on a machine for 0% .when i have too spend more than $5000 i finance and its only because i dont want to tie up my money ,and that way what ever i buy can pay for itself..if your just starting out i would go with the cash method that way your not married too the bank while you get established ..good luck