Yes, these are going to be secured loans with the machine being the collateral.
I was told I would have up to around $150k to work with using a personal guarantee as a startup. If you have a corporate entity, expect members to need personal financial statements, tax returns, etc.
Be mindful of that, that is one of my complaints against the bank I used. When I first met with them about the loan I asked, emphatically, that the loan collateral would be covered by the machine. After being told multiple times by multiple that this was the case I went ahead with the loan. Two months after signing the paper work, getting the machine installed, I received a letter that my loan had been updated and the collateral was the whole business, not the machine. Exactly what I DID NOT want. For reference, this bank also holds my truck loan, our home loan, our home equity loan, and my wife and I have "excellent" credit (high 800's).
Hold fast. It seems interest has gone up since my last loan:
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Just shy of 6%. But, they really are easy to deal with. I can do a deal without even leaving my desk.
Thanks for that, even if the interest rate is the same, I would be glad to get away from my bank. Apparently they are having all sorts of issues right now due to a "group" doing some very dirty business. This group tried to acquire them legitimately, and the owners declined the offer. Then this group started buying up interest in the bank and managed to get a member on the board. All of a sudden they are being investigated by just about every state and federal financial regulatory organization. Apparently all in an effort to get board members removed so that this "group" can get a controlling interest.
I learned all this from my lawyer, after I called and asked what I could do about my loan being changed after I signed paperwork. After I told them who my bank was they explained the above, apparently it is well known in the area if your in that business.
Either way, we are getting away from that bank. Should have my truck paid off this summer.
I would strongly recommend mhajicek that you stay away from banks if you can. I ran my business for almost 10 years without a loan, everything cash. Growth was slow, but secure. I definitely miss that.