Sba?

Discussion in 'Starting a Lawn Care Business' started by Julio Medina, Sep 26, 2006.

  1. Julio Medina

    Julio Medina LawnSite Member
    from IL
    Posts: 22

    Does anyone know about sba loans? Is that a good way to get money for startup?
     
  2. BUCKEYE MOWING

    BUCKEYE MOWING LawnSite Bronze Member
    Posts: 1,169

    They have loan programs....BUT CASH IS KING AND DEBT WILL KILL YOU
     
  3. tomgolfs44

    tomgolfs44 LawnSite Member
    Posts: 46

    sell your toys, have a garage sale, use your current equipment 'till you make enough $$ to buy commercial..............anything but borrow. Interest rates will kill ya'. It is not all deductable.
     
  4. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    Fnck a loan. I wouldn't want that debt right of the bat. I would just get equipment a little at time and upgrade as you can afford to. You do not need top of the line equipment to start out. And this is coming from a guy who loves his toys.
     
  5. djsp24

    djsp24 LawnSite Member
    Posts: 34

    I know about SBA loans all to well, first of all, if your a start up business (not been on the books for atleast 2 years) they will seriously limit the loans available to you and all those loans (like the 7a, microloans, express loans) all come with a pretty hefty interest rate, even with excellent credit (720 and up) you will be looking at interest rates between 9-14%. Now that might not seem like a whole lot until you get your payment book. a 10% average interest rate will add 200 bucks per month for every 10k loan they write just in interest. AND the kicker is, to qualify for any of these loans they will want atleast 2 rejection letters from banks (which will lower your credit score from them looking) and all SBA loans require an extensive business plan. If you need to "borrow" and want to do it on your own, I would truly consider just using your credit card or getting a credit card, because there isnt enough money being spent to warrant an sba loan and the interest rate on a credit card would be cheaper and you wont need to secure your equipment as collateral and have an accountant do depreciation rates and so forth and so forth. I would stay aay from the SBA unless you are becoming the next Fortune 500 company in your area and can warrant a HUGE start up. Hope this helps, it was my 2 cents!
     
  6. Primetime-SRQ

    Primetime-SRQ LawnSite Member
    Posts: 88


    That is what I just did this week, I sold both of our Jet SKis that we ride every weekend... But the cash is getting dumped right into the business. Then I will buy a couple more jet skis in a couple months, that my clients pay for.. :drinkup:

    Cash is KING!
     
  7. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Very good advice--

    about debt---it is not bad, it is the best way to build a business, The problem is not the debt but the person running the ship that has no clue how to run a business or make debt work for them. This is also the reason that no start-up lawn boy will be taken seriously at the banks or SBA. The general business model has way too much infrastructure, too much competition, hard to access labor pool, high overhead and low profits, And it is very hard to PROVE a secure customer base.
    Most of your dealers will have good finance packages for their equipment. Talk to them.
    The odds of getting an unsecured loan from a traditional lender are next to impossible
    The best way to get money is to prove you do not need it.

    and about business debt-- what is --NYSE--
     

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