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Bamafire1
06-11-2007, 12:21 AM
Hey guys,

I have done a lot of searching but could not find an answer that specifically addressed this. Next year, I will start a new lco in the fert/squirt side of the business. I will be getting a loan for start up costs including equipment, marketing costs, etc. My first question is, when starting a new company, I have read that it is very important for you to pay yourself a salary. After all, we are all hear to make a living. Would my modest, first years salary be included in the loan? As you know, profit with a new company is hard to come by and we all have personal bills to pay.

Also, would you recommend a SBA loan or some other kind? I have heard that SBA loans are quite a headache.

Thanks for your advice and assistance.

KS_Grasscutter
06-11-2007, 12:37 AM
Ok, the FIRST thing to do is get licensed as a pesticide applicator and get all the necessary insurance. Now, to answer your question. It is a BAD idea to take out a loan to pay for equipment. Why not buy a spreader for $350, a BP sprayer for $100, and do it part time until you get customers built up, and save as much as you possibly can. When you get money saved up, you can get a trailer, then a 200 gallon sprayer, then a PermaGreen, and pay cash for everything. I REALLY wish I didn't get a loan for some equipment a year or so ago, now most of what I make either goes to pay for equipment that I don't technically need, and my truck that I also dont technically need. I have found that it ISN'T cool to get a loan and stuff you don't need just because you can, make sure you NEED it first, then pay cash for as much as you can.