As Gold Drops .........

Originally Posted by NobleMetalWorks

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

I am talking more in generalities and you seem to have a specific situation in mind. Every situation is different, but the way things work tend to have a pattern.

Banks look at $100k mass of used equipment (which you probably didn't buy in one day) and think maybe I can get $15k out of it at auction if you don't pay back a loan. Some equipment with high demand and long lead times might actually fetch a decent amount of the original purchase price, most does not. Banks are about the same as pawn shops, they want paid back with a big profit or they sell your item for a big profit either way they don't care. If you have nothing as collateral you don't get a loan (unless the US gov is going to pay the tab).

PS: I get along with people of differing views just fine. The world would be a ****ty place if everyone had the same opinions I do and the older you get your opinions change with experience.