# business loan help



## twistedmonkey (Feb 19, 2008)

hi all im trying to get a loan and was approved for it but equipment leasing companies calculate things different and 1$ buy out at the end seems like a financing rather than leasing. &9000 loan after 5 years turns out to be 14500 at the end. is this a logical. i tried personal loan but not gonna happen. not because of my perfect credit but income verification. so personal is out. what do u guys think is are all leasing companies like this for new start ups? any help will be greatly appriciated

mike


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## treefox2118 (Sep 23, 2010)

Sounds about right. Loaning to a new business is always riskier than loaning to an individual -- so the cost of the loan goes up.

$14,500 over 5 years is $8 a day. $9,000 over 4 years is $5 a day. $3 a day shouldn't make or break a business decision, but it should be considered.

I've never personally gotten a business loan for a startup, so I don't know the consequences of leases.


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## twistedmonkey (Feb 19, 2008)

its just knowing u are getting ripped off lol hurts u know but i guess it is what it is unless u buy cash.its like a car loan. even if u pay early it doesn't matter u still pay the same amount. 5 years 250 a month .


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## treefox2118 (Sep 23, 2010)

Yep but look at home mortgages and people still do those.


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## Vitaman (Aug 8, 2014)

treefox2118 said:


> Yep but look at home mortgages and people still do those.


I've lived in my house for 5 years or so and I don't even think I've started paying on the principal yet. I even pay extra every month, and my 30 year loan should be paid in 17 years. I don't know all the different types of loans, but if you just pay as much as you are comfortable with it's not bad. Just try to avoid paying minimum payments every month. The interest is what pays for the bankers private jets, not the guy who pays off his credit card every month.


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## twistedmonkey (Feb 19, 2008)

Maybe I should just do it and instead about worrying Bout the 250 just focus on making $$$$


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## treefox2118 (Sep 23, 2010)

Google search the lender and see what others have experienced.


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## wardogbobie (Oct 10, 2013)

dont finance. If you dont have the money. dont get it


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## lkt1954 (Nov 15, 2009)

If you are setup as a business and file a schedule c on your taxes, in most cases a lease is a 100% deduction. As your accountant.


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## drcigg (Feb 28, 2012)

The numbers seem crazy but a lot of new businesses fail the first year. Not to mention all the hassle to get the rest if they go belly up.


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## linapparel (Oct 12, 2010)

you should get quotations from at least 3 more leasing companies and compare them,you can always ask your bank about lease programs.


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## keepitspinning (Jan 13, 2014)

At start up I did some leasing because it was my only option this is 20 years ago and things have changed). In a sense I got ripped off by two different companies. One I lost track of and paid the lease for four months beyond the payoff date, and I lost that money. Most frustrating thing with leasing companies is if they sell the loan to someone else. Had that happen four times in one lease. I'm in a position now that I don't need leasing companies and I would go without before I use one again. I get calls from them at least twice a month and I tell them I deal with my local bank. As a side note, commercial loans are a higher rate than personal loans.


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## twistedmonkey (Feb 19, 2008)

my credit is perfect not worried about that but income verification lol seems to be the norm. if im a start up how can i have income lol. i got loan approval from discover 12% 60 months 200$ great for me but they need w2s and pay stubs etc. years ago my dog even could get a loan. now they want everything. local bank said the same thing. so im left with one option my local credit union. im gonna see if they can help if not im just gonna bail out. somebody told me to try lendingclub.com its like a crowd lending im gonna try that as well.


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## keepitspinning (Jan 13, 2014)

The financing world has changed, and the regulations are chest deep.
I secured a loan about a year ago, and one of the questions they asked me in order to secure the loan, was if I had ever been convicted of a crime against a child (basically asking if I was a pedophile). I have no idea what that has to do with getting a loan, but the loan office explained that that is not a question that is required.
Twelve percent is kind of steep.
The question you have to ask is, can you recoup the investment, plus interest and still make money to survive.
I shake my head everytime someone on this forums asks "what should I be charging".
Only they know what their cost of doing business is, and if they don't know how to figure it out, they won't be around for long anyway.
This is an easy business to get into because it doesn't take a huge investment (in comparison), to get into it.
If you buy good equipment, that is a different story.
I was already self employed when I got into this business, and I was able to keep both businesses going.
I saw the light that the original business I had was slowly fading away with changes in the market place.
For me it has worked out because I was able to grow this business to a point it now employees several people.
Best of luck which ever way you go.


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## djque (Feb 5, 2013)

I would not do a finance especially if your starting up now. to many people in the business now and either you go win or lose. I always think of loosing before I think of winning.

Its better to save your money and buy out cash that way there is no worrying about paying the loan if your business flops.

I say this make sure you know exactly what you want to do and get into cause I started with silkscreen 
then went to heat transfer 
then to plastisol transfers 
to sublimation and 
now Im doing heat transfer vinyl 
and sign vinyl. 

now im on rhinestone designs.
next will be Eco-solvant printer when the money is right.

thing is I own and paid cash for everything else I mentioned as my other full time job is A DJ And sound rentals which I own over $80,000 in that equipment.

these forums I love but seeing different sections on what else is out there had me buying things left and right cause I wanted to do that. try to stay focused on one thing and not everything this forum has to offer. 

If you have to get a loan than I would say get it and go straight foe a eco-solvant printer and do banners, signs, decals, contour cut. you will have a better chance at winning to me. that my next step once I figure out room and money.


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## twistedmonkey (Feb 19, 2008)

thanks all for u ur input. this is going to be a side thing i already have a full time job. i should have been more clear ive been doing side past 8 years tshirts signs sublimation etc. i even bought a dtg and got rid of it 2 months ago. im trying to get into engraving business. 18x12 trotec 35watt laser small sign and engraving for out home buziness basically. as of now we are making small wood signs with wood plaques sand paint than vinyl. and seems to be selling so far. we wanted to make this a little bigger and offer more products . more professional and more variety. i love lasers cause u can turn a simple item into retail ready in less than 10 mins depending on design. 

i found another financing company they want the same things. lets see what they say










djque said:


> I would not do a finance especially if your starting up now. to many people in the business now and either you go win or lose. I always think of loosing before I think of winning.
> 
> Its better to save your money and buy out cash that way there is no worrying about paying the loan if your business flops.
> 
> ...


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## gretchenhill (Oct 30, 2014)

Having a bad credit history doesn’t have to be the end of your dream to own a business. If you search the market, there are many lending companies that offer bad credit business loans for people who can’t qualify for standard loans. You can visit badcreditresources.com

But even with poor credit, you should never put up with lenders who may try to take advantage of your situation. You still have the right to be treated with respect and fairness. However, if you don’t take the necessary precautions, you could be victimized by predatory lenders. This is why it is very important to do research particularly when in search of a bad credit loan


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