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Intrest rates

Discussion in 'Business Operations' started by JVS, Feb 9, 2003.

  1. JVS

    JVS LawnSite Member
    Messages: 132

    With rates at an all time low- We are going to upgrade our equipment. Anyone know of any leasing companies with low rates for equipment? under double digits?
  2. Barkleymut

    Barkleymut LawnSite Bronze Member
    Messages: 1,117

    I believe Exmark has 9.9 or 8.8, check their link above and click on financing.

    The main question is, do you own a home? If so go and get a home equity loan or line. The rates will be under 7% unless you have poor credit. Also the interest is a PERSONAL tax write off. I just paid for a new truck, new enclosed trailer, and new Exmark ZTR with the proceeds from my line. Also the payback requirements with a bank loan are usually more flexible than from a manufacturer. Of course if you are renting or living with ma and pa all of this advice is useless.
  3. brentsawyer

    brentsawyer LawnSite Senior Member
    Messages: 663

    If you have home with 10K in equity, that would be the way to go. Currently 5/3 bank has theirs @3.74 for first 3mos. Adjust to prime after which is 4.25 and I think could go lower to 4.00 or more in a month or two if things don't start shapping up better, expecially if fuel prices keep rising, that is a big disposable income disaster in the making again (2001) that needs to start changing directions fast, not so much of a problem on the personal level as it is on the corporate level eroding profits further.
  4. JVS

    JVS LawnSite Member
    Messages: 132

    Thanks! I am looking for terms under the business I do NOTHING uunder my personal name since we are a corporation.

    Car dealers are offering 0% so I am looking to see if terms are just as competitivie
  5. ScottH

    ScottH LawnSite Member
    Messages: 60

    Try Vic Tatum @ Kensington Capital 412-422-8161. Located near Pgh PA. will do deals anywhere in continental US>.

    He's helped a number of our customers. rates have generally been between 9 and 10 %.

    He's willing to finance most eqpt and can structure payments around your needs.

    Good luck - ScottH
  6. Barkleymut

    Barkleymut LawnSite Bronze Member
    Messages: 1,117

    JVS- I am also a Corp. Mine is an S-Corp and my accountant who does everything 100% by the books told me to take out a home equity loan and then loan the business the proceeds from our personal account. He said this is perfectly legal up to $100K. I just can't see paying over 9% if you can get the money for under 5%. Plus you get the interest deduction.
  7. JVS

    JVS LawnSite Member
    Messages: 132

    cool thanks for the tip!
  8. beck

    beck LawnSite Senior Member
    Messages: 453

  9. paponte

    paponte LawnSite Silver Member
    Messages: 2,366

    Yes JVS, you can make a "contribution" to the corp. and have the business pay you back. Ask your accountant about that, I have done it before. Also you might want to check with the state. In New York after 6mo's of incorporation I was able to get a $30,000 revolving line of credit. Meaning you only pay interest on what you spend. And once it's pay'd off it's available again. It was a grant they were offering to new businesses.
  10. MPhillips

    MPhillips LawnSite Member
    from zone 7
    Messages: 94

    Even if you've inc'd you'll still need, in most cases, substantial audited financial documentation going back several years to get financing for the corp, in the corp's name...more than likely you'll need to co-sign for all financing until you get some history under your belt. Having said that it's best to start by "loaning" the business money and paying yourself back. Another thing to consider is to talk to the manufacturers or your dealers...there are many deals out there now...low rates, first few months no financing. Those are good ways to go too. Good luck

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