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Old 01-05-2013, 08:57 PM
grandview (2006)'s Avatar
grandview (2006) grandview (2006) is online now
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Join Date: Jan 2006
Location: Lancaster N.Y.
Posts: 3,482
You may be able to do a line of credit or business loan. Tell them your going to pay the truck off with the money and they can use it as collateral
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Old 01-05-2013, 09:54 PM
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Efficiency Efficiency is offline
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Join Date: Apr 2011
Location: zone 6
Posts: 1,390
You need to marry the life of the asset financed to the life of the financing. Short term LOC is for short term needs (not long livec assets) ie payroll, COGS, inventory. You almost always have to zero your LOC each year and that would be tough to do if you neef long term financing for a truck for example. If you qualify for a revolver (i dont btw), this whole post is moot but then.
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Old 01-06-2013, 02:18 AM
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cpllawncare cpllawncare is offline
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Join Date: Apr 2011
Location: Greenville, SC
Posts: 2,659
I got a SBA LOC just as you say for the lean months, like now LOL! I'll pay it back by mid season though. It took me 6 months to get it approved the SBA is VERY SLOW!
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Old 01-06-2013, 03:26 AM
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GreenI.A. GreenI.A. is offline
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Join Date: Jul 2010
Location: North East
Posts: 2,132
We utilize a LOC as well, I keep my vehicle loans and large equipment loans seperate simply because these have a much lower interest rate than a line of credit. From what my loan manager told me is that if you default it is much easier for them to reposes your vehicle on a auto loan than it is for them to seize a vehicle used as collateral on a LOC. Seizing collateral is more like a forclosure process and not as quick and simple as a repo. Thus they charge a higher interest rate.
Why do people not respect us as they do other tradesmen? Because every Tom, Dick, and Harry doesn't think he can be a plumber or electrician!
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