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Old 10-26-2001, 10:54 PM
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Lawn-Scapes Lawn-Scapes is offline
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Small business loan

I was reading the Killer loan rates thread...

And was wondering how difficult it is to get a small business loan? I'd like to get one to pay off my 2 mowers and get a lower interest rate. I'd also like to get some additional equipment. I'm thinking of about $12,000. I have decent credit... Would it be hard to get this size loan?
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Old 10-26-2001, 11:21 PM
thelawnguy thelawnguy is offline
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Locally, I can get a SBL up to 15,000 at 7.5% up to 60 months. As long as you are not a credit stiff they will cut the check while you wait.

They have other products, also. http://www.websterbank.com/
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Old 10-27-2001, 09:10 AM
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MOW ED MOW ED is offline
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If your business is good then consider a home equity loan also. I never tried a small business loan but I had no problem getting 10K a few years ago off the house. Paid it off in a year, that makes them want to loan you MORE.
Good Luck.
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Old 10-27-2001, 10:56 AM
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Thanks guys..

MOW ED.. No house yet. I was wondering if this would come into play?
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Old 10-27-2001, 11:30 AM
Guido Guido is offline
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LOL!

Quote:
Originally posted by TSG
Thanks guys..

MOW ED.. No house yet. I was wondering if this would come into play?
Only if you go for the home equity loan!

Try the small business loan first, you should be okay if you have good credit. It may also help build the credit history for you or your business depending on how you set the loan up.
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Old 10-27-2001, 01:44 PM
eggy eggy is offline
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To be honest most banks will only loan against your house or for the equipment value, it is unfortunate but around here a lawn mowing contractor is still veiwed as timmy on his bike with his push mower, generally though they tend to think differently after looking at P and L staments. Educate your banker!
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Old 10-27-2001, 02:01 PM
greensummer greensummer is offline
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What about a commercial line of credit?
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Old 10-27-2001, 04:10 PM
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Stonehenge Stonehenge is offline
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The commercial line of credit is a good idea, but you'd have to check on the rates for that. Might be higher than a loan.

For pretty much any small biz getting a loan, you need to personally guarantee it. At least until the biz is big enough that the biz collateral can cover the loan amount. This means filling out a personal financial statement,which asks for info like stock portfolio, your annual income, your spouse's annual income, land you have, other eqpt you have, debts you have...If they see all this and think you're a good risk, and you offer all that up to the bank on the contingency that you default on the loan, they'll give you the loan. The first time you do it you'll be a little nervous.
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Old 10-28-2001, 12:33 PM
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When I started I met with a VP of a small bank and we talked about the business and what the bank wanted to see. I developed a business plan and presented it to him. We decided to go with a home equity loan. Knowing that you don't have a house with equity this won't work for you but the bank is going to want some security and mowing equipment is not the type of collateral that they prefer. If you go under they cannot resale the equipment as easy, etc.

Another possibility is to find a person that will back you with a low interest personal loan. Cosignee.

Now that I am doing business and my company is growing all I have to do is get on the phone to my bank and it is a done deal. That makes it easier for me to make decisions in the field when talking to builders or homeowners.

Good luck, Chris.
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