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  #81  
Old 02-20-2011, 08:38 AM
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GMLC GMLC is offline
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Lesson of this story is READ THE FINE PRINT on all loans and lines of credit(on everything). Never give anyone full access to your bank accounts. When your business grows to this size you need an attorney on waiver to read through everything!!!

I feel sorry this has happened again but it could have been avoided. Thanks for sharing so others can learn from your mistakes. Two business failures is tough man.
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  #82  
Old 02-20-2011, 01:22 PM
cutbetterthanyou cutbetterthanyou is offline
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Thanks for sharing. Subscribed.
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  #83  
Old 02-20-2011, 02:08 PM
kgcs kgcs is offline
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subscribed
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  #84  
Old 02-20-2011, 04:19 PM
cutbetterthanyou cutbetterthanyou is offline
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Is there any way to subscribe to the old thread now that its closed? I just would like to find it in my user cp because i am not going to read 40+ pages in one sitting.
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  #85  
Old 02-20-2011, 04:24 PM
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The old thread and this one, are not the same and not really a continuation. I dont think the old one should have been closed. But I dont have those powers
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  #86  
Old 02-20-2011, 04:35 PM
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flatlander42 flatlander42 is offline
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Quote:
Originally Posted by cutbetterthanyou View Post
Is there any way to subscribe to the old thread now that its closed? I just would like to find it in my user cp because i am not going to read 40+ pages in one sitting.
just copy the link....or make it a favorite and keep changing it.
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  #87  
Old 02-20-2011, 05:09 PM
cutbetterthanyou cutbetterthanyou is offline
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I'm sorry i am worse that and 90 yo with a computer, but how do you do that?
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  #88  
Old 02-20-2011, 05:18 PM
ozarklawns ozarklawns is offline
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I dont understand the fact that if your so busy landing all these huge big money jobs and knockin them out why you would need financing and extended lines of credit to the extent of bankruptcy upon note call. When you rely on a bank to support your business you might as well be relying on cops to "serve and protect you" or the government to "take the peoples best interests at heart". Starting/operating a big business on negative equity is the single biggest mistake/headache one can make for themselves. Start a small business with positive equity and grow Net Worth in terms of owning equipment and capital investments. Operate within your means and have some self reliance when it comes to finances. Get caught up in the credit game and overextend yourself and all the sudden one card falls and the whole stack crumbles. Just my 2 cents. My best hopes and wishes for us all!
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  #89  
Old 02-20-2011, 05:46 PM
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CSL&L CSL&L is online now
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subscribed. Great story
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  #90  
Old 02-20-2011, 05:55 PM
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With all due respect. I think I explained the line of credit to death.

On paper, the business was doing great.

Great balance sheet
Showed a very nice profit
Little debt

The line of credit is very simple.

To make it simpler.

You have a job for 10,000
Your expenses are 7,000

The deal is offered is.

You pay 7,000 now. And in 45 days Ill give you 10,000

When you get that 10,000 you pay off the line and now have 3,000 free and clear

Next job 15,000 your expenses are 10,000
You have 3,000 toward that.
You take that 3,000, the banks 7,000 and pay the expenses.
Then you get paid 15,000 and now you have 8,000 in the bank.

Next week you have 2 jobs one 20,000 and one 15,000
First one expenses 13,000 second one 10,000

Take your 8,000 plus 15,000 and pay your expenses
Get paid for the jobs, pay back the 15,000 to the bank. You now have 20,000 in the bank.

Now week one your doing the first one. Then it will be 6 weeks after until you get paid.
Week two the second one. 6 weeks to get paid

You see, to do it slow. Without the line of credit to start. Even with a good amount of money in the bank.....You would have to do a job......Shut down for six weeks.....Do another job......Shut down for six weeks.....

Yes....It can be done that way. But it takes A LOT of money to finance multiple jobs at once.

At the end. You end up with a lot of money. But you need that little bridge in between the time you have to pay, and you get paid.
Eventually, you may have enough money to finance multiple jobs. But you can see how long that would take.

So it wasnt a case of "overextending" and there was no "going into debt"
I wasnt buying trucks i couldnt afford, or buying equipment hoping to get work.
I was using a tool for exactly what it was designed for.

Where Im at fault.....Was not knowing that line could be taken away at any moment.
In that case, I would have done some things different.
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