[d!abolic]

My 18-month-old corp needs 75-150k to buy used construction equipment and i was wondering if anyone here has any experience with business loans (government or otherwise) of this nature? What are the odds of a young company getting a loan of this size? What would it take? We could put down 20% of our own money, use account receivables as collateral, etc.

[Karen]

Have you talked to a bank? If you can put down 20% then you should be able to work something out,

Karen

[Bscivolette]

Shouldn't be hard at all, in the world of loans 150K is pennies.

[Steve]

The easiest way to finance it, is financing the actual equipment itself.

Some company would love to finance the equipment especially if you put 20% down.

[pentupentropy]

look for the companyt that services most of your needs at once. Lease from them and a good possibility that they can make up for what they don't need by subleasing.

Leasing may work out to your benefit as well since the tax benefits are usually greater and sometimes you can get a better service contract out of it. At 150K in construction are you looking at excavators and whatnot? Pickup/dump trucks?

The other advantage to a lease is that it's often easier to upgrade equipment

[akula]

Originally Posted by d!abolic

My 18-month-old corp needs 75-150k to buy used construction equipment and i was wondering if anyone here has any experience with business loans (government or otherwise) of this nature? What are the odds of a young company getting a loan of this size? What would it take? We could put down 20% of our own money, use account receivables as collateral, etc.

Yes. What you want is called factoring. Find a factoring specialist in your area and they will talk with you. Firms like Prescott-Thackery

The other way is to get an overdraft from a bank and lease the equipment. I would lease it. Locking up capital in depreciating assets is a choce made by either very smart people in particular circumnstances or idiots.