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New Shop and financing

LOTT

Hot Rolled
Joined
Nov 28, 2016
I have a buddy that didn't have any collateral or assets, and went to a bank for a loan.
He financed the whole shebang.
Now sometimes, he goes for 5 weeks without a paycheck.
He gets a PO from a big company ( $40k)
Orders material, (bank pays for it).
When halfway thru, company pays 50%.
Bank takes out their part for equipment, pays his building rent, insurance, truck payment, welding supplies, tooling,any other expenses. There's very little left.
He was doing OK at first, now it's just him and a young kid that works for him.
He's doing 7 days a week, and keeps getting further behind.
He can't hire anyone, because he can't pay.
They have some machines not running, and can't afford to fix.
It's really tight and he is scared.
Not sure what will happen.
What kind of shop and work is it? You said welding, is it a fab shop?
 

jackal

Titanium
Joined
May 4, 2006
Location
northwest ARK
What kind of shop and work is it? You said welding, is it a fab shop?
He does assemblies and repair for the local foundries, companies that make batteries, furniture, test & assembly bases for oilfield .
Pretty much all job shop work.
 








 
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