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4 Replies Last post: Apr 1, 2008 7:34 AM by biosminer

Help Obtaining financing

Feb 8, 2008 12:43 PM

AE#1volume 2 posts since
Feb 8, 2008

Here is my dilemma. I have owned and operated a family business for the past four years now. Although i am not listed as an owner which in turn is making it hard for me to obtain financing. I have the opportunity to pick up a new landscaping business that has been locally owned and operated for 6 years now. Here are the companies stats.

35k in companys assets
95 current contaracted accounts
10k in revenue per month

now the cost of this company is 55k, it will have the original crew still working. i am looking to expand this company from residential to commercial bid accounts. I however can not seem to be able to have anyone willing to lend on what is considered a "start up" because i have not run the business for the last 2 years. my other option is to take a loan out against the company i currently own but i am not listed as the owner as of yet. any suggestions?

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biosminer 15 posts since
Mar 31, 2008

1. Re: Help Obtaining financing Mar 31, 2008 8:31 PM

i have not solved my own problems so these are uneducated thoughts...The equipment has a limited life..what is it worth when your done paying for it?The accounts also have a limeted life and will be up for renewal or negotiation.The 10 k will now go toward equipment maintainence ,payroll ,and a big debt of 55k.
I would go to a proffesional temp service and hire a salesmen whenever you have cash.Also spend 10k per year on classified display advertising.(like religion once starting never sway)in less then 2 years you will have your 100 accounts.You could probably hire a retired landscaper part -time ,that knows the business and could sell jobs.

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mlebovits 42 posts since
Oct 10, 2007

2. Re: Help Obtaining financing Mar 31, 2008 10:50 PM

Have you investigated an SBA 7a loan?

Marshall Lebovits
www.Funding911.com

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LUCKIEST 7,935 posts since
Aug 6, 2007

3. Re: Help Obtaining financing Apr 1, 2008 6:40 AM

Help Obtaining financing. Think "outside the box"
Do you have an Accountant??, A Lawyer??
NOW is the time to use the power of a professional.
There might be an easier solution.
You have owned and operated a family business for the past four years,
maybe you can take this new landscaping business under your company
as a sub or a division of your present company.
Talk to the professionals.
LUCKIEST

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biosminer 15 posts since
Mar 31, 2008

4. Re: Help Obtaining financing Apr 1, 2008 7:34 AM

one final quantiication...contracting is akin to the entertainment business.the owner is the star.Except for very large companies with years of service.the customer buys you.Brad pit cant send in his body double for the big shots.Buy the other guys equipment at auction for 10 cents on a dollar.The entire value of this deal will diminish in your hands.I watched a very large utility company go around buying up small electrical and mechanical companys.This is a multi billion dollar company with many lawyers and accountants ,engineers etc.still the whole thing just did not work.If you want to finance 55 k over 5 years spend that money on advertising and sell yourself.Plus you can pull your ads if work slows down but the debt payments wont go away.Good luck

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Help Obtaining financing

Feb 8, 2008 12:43 PM

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