As Gold Drops ......... - Page 2

Originally Posted by unknownk

I don't know of any part timers (people picking up scrap and working out of your home) that would need a $40k HD shredder. That sounds like a very large volume enterprise to me. Low overhead and costly equipment purchases don't really go hand in hand unless you have a large contract signed and need it to do the work (very risky if the client backs out).

I know how business loans work. Unless your company has enough equity (buildings owned, industrial equipment paid for, specific amount of orders booked into the future, low debt, etc) no bank will give you a revolving credit line. There is a big difference in a manufacturer of goods compared to a service company, consulting group or just a reseller of goods. Banks need something to liquidate when you go out of business and get all their money back. Small timers put up their belongings to get a work loan, which is how some people end up homeless.

I used to be a partner in a business development firm. I can tell you this, you are right but excluded many other methods of financing, specially for those without assets. If the business is privatly owned, it also not typical they will liquid, as a matter of fact, it is often best not to be. You are also forgetting loans for assets in which the assets being purchased secure the loan. I obtained a lot of my equipment in this way, a small percentage down, the rest financed Also factoring, etc.

I have a lab where I do most of my work, but I can also say, I have over 100k worth of equipment in at home much of which also happens to be in my garage. So again, you are wrong.

I wasn't suggestion that the failing business mentioned was working out of there garage, how could I know that? Your comments, to which I responded, are not mutually inclusive to the post. I am not sure why you want to marry the two, in fact they are mutually exclusive unless you can prove you have first hand knowledge, which of course you do not.

At this point you can either concede your statements were incorrect, or you can choose to continue to argue your point which is painfully obvious as to not be tennable.

Scott

Sometimes you just have to agree to disagree. We need to all get along.