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SBA Business Loan Approved

Discussion in 'Starting a Lawn Care Business' started by echeandia, Mar 1, 2007.

  1. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    Well I just received a call from the back that my business loan was approved. It will be guaranteed by me and the SBA and my equipment will be used as collateral. All in all it was a pretty painless process.
  2. Raven386

    Raven386 LawnSite Silver Member
    from CT
    Posts: 2,160

    Congrats! Good Luck with everything!
  3. CkLandscapingOrlando

    CkLandscapingOrlando LawnSite Senior Member
    Posts: 652

    What all did you have to do,and what was it for?
  4. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    I had written a business plan with three years projections during December and January. I gave them a copy of the plan, my resume, I completed a personal financial statement, and a simple loan application. That was it. I was looking for 10k but they said I could have 18K. I am using it for setting up and operations.
  5. fitzg2md

    fitzg2md LawnSite Member
    Posts: 156

    Dont mean to pry, but could you give some more info? What kind of equipment collateral did you have? What kind of personal salary? Do you rent or own? Also, how good is your credit score?

    Sorry, dont answer these if you dont want. I know they can be taken as rude questions!:hammerhead: Just curious about my own situation... best of luck! -Mike
  6. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    I was laid off last April and do not have a job. My wife is an owner of the company and does work as an Executive Assistant at a large company. The equipment that will be used as collateral is a pickup truck, two mowers, and assorted hand helds. I am in the process of buying everything so I cannot be specific, except to say that it will all be new (not including the truck). I don't know my credit score exactly, buy I am guessing it is around 750. That is what it was about 18 months ago when I last checked and I haven't done anything that would change it (late pay, new credit, etc.).
  7. fitzg2md

    fitzg2md LawnSite Member
    Posts: 156

    thanks. im flirting with an SBA loan myself. Dont really NEED it yet, but It sure would help. Best of luck! -Mike
  8. GreenN'Clean

    GreenN'Clean LawnSite Bronze Member
    Posts: 1,512

    Good luck this year and congrads
  9. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Dont take this personal, but just a suggestion...just because you are approved for 18k doesn't mean you need to take 18k. There are ton of newer used big mowers out there, (05 and 06 demo's etc.) You will find that 18k doesnt go very far in this business. It does sound like you have your she-ite together though, having a business plan already in place, thats probably more than 75% of the people in here can say. The 3 biggest things you need to look at IMO are, a decent truck, large enough trailer and a mower that is usable on at least 85% of your lawns (if you are looking at a larger mower). In other words dont buy a 60" ztr for 3 out of 20 lawns you have. Buy a 48" or something along the lines of that so you can use it on 100% of your lawns. I dont want to sound like I'm giving you "fatherly" advise but I have seen many smaller guys over buying everything then they are stuck buying twice as much equipment so they can service all of their customer's, spending much more than they originally thought. Some things NOT TO SKIMP ON...1. the most powerfull backpack blower you can afford,2. a trailer, one or two sizes bigger than you think you need, 3. Good advertising! Again I dont want to sound like I'm running your business but just some food for thought!
  10. PatriotLandscape

    PatriotLandscape LawnSite Bronze Member
    from MA
    Posts: 1,209

    750 thats a nice score, good job.

    Good luck, and don't spend too much, buy value not price.

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