Used machine financing?
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  1. #1
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    Default Used machine financing?

    Hope this is the right forum for this question. I want to buy a used machine from an individual for starting a garage shop. What are the best companies to contact for financing?

    Thanks

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    Are you financing through a business or personally?

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    I'm currently an independent contractor, and have a tax ID number. Could do it either way.

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    Your cheapest source of money will be a home equity line of credit.

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    From personal experience I can tell you its hard to get financing on a used machine tool that is more than about five years old.

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    Talk to Marty at Banterra Bank. They were around 5% for 60mo. terms, straight loan not a lease.

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    Quote Originally Posted by Rick Finsta View Post
    Talk to Marty at Banterra Bank. They were around 5% for 60mo. terms, straight loan not a lease.
    Yep, my Brother R650 is through Banterra @ 5%.
    But, I like U.S. Bank better. Easier to deal with. And, I am currently at 4% with them.
    But, I could not get approved for enough through them to buy the Brother (or I would have).

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    if you're just starting out, don't waste your time at the bank. They won't talk to you until you've got 4 yr under your belt. Buying through a dealer they can set you up with a loan shark. Usurious interest on an overpriced machine, but it can work.
    To buy from an individual, you could borrow the money from a rich relative, or as suggested, a home equity line of credit is probably your best bet.

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    Quote Originally Posted by Larry Dickman View Post
    if you're just starting out, don't waste your time at the bank. They won't talk to you until you've got 4 yr under your belt. Buying through a dealer they can set you up with a loan shark. Usurious interest on an overpriced machine, but it can work.
    To buy from an individual, you could borrow the money from a rich relative, or as suggested, a home equity line of credit is probably your best bet.
    I got a loan through a local bank before I even had a business. I just presented a reasonable business plan with realistic numbers and they went for it. I wouldn't say it's impossible. The loan was for $210k.

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    Quote Originally Posted by dpolseno41 View Post
    I got a loan through a local bank before I even had a business. I just presented a reasonable business plan with realistic numbers and they went for it. I wouldn't say it's impossible. The loan was for $210k.
    Was your dad the president of the bank? Seriously, that seems hard to believe.

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    Quote Originally Posted by Larry Dickman View Post
    Was your dad the president of the bank? Seriously, that seems hard to believe.
    Nope! I was shocked as well, especially being 24 at the time. Maybe just a matter of good timing. Either way I've never had trouble getting machine financing. US Bank and Intech are both easy to deal with.

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    Yeah, I couldn't get 10 grand almost 30 years ago, with good credit and good income.

    I leased several used machines through Stearns in MN, expensive and loan shark like late fees, but they did the deal

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    Quote Originally Posted by wheelieking71 View Post
    But, I like U.S. Bank better. Easier to deal with. And, I am currently at 4% with them.
    Wow, as bad as US Bank is to deal with as a bank, this is surprising to hear. I'm currently at 6% with my local bank, so I may look at US Bank next go round.

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    Are these collateralized loans? Either personal/company assets or the business cash flow? I mention this because 4% non-recourse, non-collateralized loan seems too good to be true. If y’all don’t mind mentioning online, it would be helpful (to me at least) to know the type and amount of collateral required to get the rates you got. If nothing else, it show how much of a schlemiel I am when it comes to getting financing.

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    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.

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    Quote Originally Posted by Fal Grunt View Post
    Wow, as bad as US Bank is to deal with as a bank, this is surprising to hear. I'm currently at 6% with my local bank, so I may look at US Bank next go round.
    Hold fast. It seems interest has gone up since my last loan:

    us-bank-rates.jpg

    Just shy of 6%. But, they really are easy to deal with. I can do a deal without even leaving my desk.

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    Quote Originally Posted by Rick Finsta View Post
    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).

    Quote Originally Posted by wheelieking71 View Post
    Hold fast. It seems interest has gone up since my last loan:

    us-bank-rates.jpg

    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.

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    I am not sure if they finance everyone, but we use Community Bank of the South. They are good to us. Local Bank here in Florida.

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    You can contact Celeste Bozzi at [email protected]. She works for 520 Machinery and can get finance options for machines. She has been doing this for 20 years so she can be a good resource to find out if you are financeable. That is her cell phone number....she's really good.
    Last edited by Berg-520; 02-11-2020 at 11:12 AM. Reason: cell phone needed to be removed

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    Quote Originally Posted by Berg-520 View Post
    You can call Celeste Bozzi at ****. She works for 520 Machinery and can get finance options for machines. She has been doing this for 20 years so she can be a good resource to find out if you are financeable. That is her cell phone number....she's really good.
    You might want to obfuscate that number so she doesn't get so many scam calls.


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