Financing Soultions?

[Goatshaver]

So I've been trying to finance new equipment for the last couple of months. I'm really leaning towards and Epson machine.

The company I tried with gave me a rate of 24% interest rate over 4yrs with $5k down. I told them I didn't want to take it because of that rate. They kept trying to tell me the rate doesn't matter if you can pay the bill. Yeah I get that but I'm still paying that high interest on the amount financed.

So what options have people tried? Crowdfunding?

I've built a solid customer base and it's growing but my SP-540V is going to need to be upgraded to something better to keep up with demand.

 

[2B]

look at an SBA Loan

that listed interest rate is too much.

 

[Goatshaver]

look at an SBA Loan

that listed interest rate is too much.

I guess that will mean I have to draw up a business plan for one of those. I've only been in this for 6 months now as a business which is making it difficult.

 

[Christian @ 2CT Media]

Look at leases with $1 buyout... Typically you can get lower rates if you can't get traditional financing.

 

[Goatshaver]

Look at leases with $1 buyout... Typically you can get lower rates if you can't get traditional financing.

Any recommendations on companies for leasing?

 

[James Burke]

I guess that will mean I have to draw up a business plan for one of those. I've only been in this for 6 months now as a business which is making it difficult.

With that said, do this:

1) Sit down and build a business plan
1A) Sit down and build a business plan
1B) Sit down and build a business plan
1C) Sit down and build a business plan
2) Develop a solid relationship with an outsourced print vendor
3) Hustle the bushes and develop business relationships and great customer service
4) Bring manufacturing in house when your business volume permits you to make a higher ROI compared to outsourcing

Being at it for only 6 months, you're going to have a very significant "free-fall" period...otherwise known as a learning curve. You'll be burning a lot of cash during that period, and perhaps a good bit well beyond that.

JB

 

[bannertime]

We've used Direct Capital for at least 5 machines now. Been happy with them, they have the $1 buy out program.

 

[rjssigns]

To the OP. Fix whatever is ailing your SP540V. Way cheaper than going into debt for a machine you think you need.

You would be shocked at the sheer volume of work I cranked out with mine. All a matter of scheduling. Had days of nothing but printing, next day was laminating, contour cutting and taping. After that installs and deliveries.

Banged through 6 full wrap kits one summer. Accounting for "yield that's about 3000 square feet printed and finished by lil' ol' me. That doesn't include all the banners and church picnic work on calendared vinyl.

On top of that I outsourced a ton of work. Learned a long time ago trying to grab every last dollar from every job works just the opposite when it comes to making money.

Also learned to leverage other folks equipment and expertise. FireSprint, Signs365, etc...

You can appear much bigger than you actually are by doing so. You will also have happy clients because you won't be crabby from no sleep.

 

[Christian @ 2CT Media]

Direct Capital, Geneva Capital, and Fundera are a few I know of but there are many that specializes in our industry.

 

[LED Signs & Designs Texas]

Great advise all the way around(except the SBA) you might get an answer in 6 months.
Leasing companies don’t give a damn about a business plan, they just want to see you have enough to pay your bills plus some.
The paper work is minimal for the leases and you get an answer in a few days. If you don’t qualify, fix your current machine, dig down and work with what you have. Good luck!

 

[Gene@mpls]

I guess that will mean I have to draw up a business plan for one of those. I've only been in this for 6 months now as a business which is making it difficult.

You do know that drawing up a business plan would be a good thing, right? You have enough knowledge now to do this and it will help you focus- loan or no loan. You can live your life or llfe live you and it goes by fast.

 

[binki]

Over the last 8 years we have used US Bank Equipment Financing 4 times. They build the rate into the payback so there is no advantage to paying it off early. The rate depends on how much you finance. We have been charged between 4 and 7 percent over the 4 loans. There is an up front fee of $500 to establish the account.

Here is how we did it. The bank manager came into our shop and wanted to sell us credit card processing. I told her I needed equipment and a $150K line of credit to purchase it. After a few days of processing my application they gave us $140K. Since then we have made 4 purchases on that. While the loan was to the business (C-Corp) we did need to personally guarantee the loan.

It is better than a lease or some of these other funding sharks.

 

[LED Signs & Designs Texas]

If your credit is somewhat ok, try Kabbage.
It’s an unsecured personal loan. Interest is a little high, but, you can pay back the loan early without penalty or fees.