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    2 Replies Latest reply on May 12, 2008 3:50 PM by capizzey

    Small Business with good revenue needs equipment loan.

    capizzey Newbie
      I have a 1 truck transportation business and am leased to an excellent company. This company holds the lien on my truck. I am currently putting 32% of the gross into an escrow account as required by the company because they hold the note on my truck. They do not pay interest on this account. The only way I can put this money to work for my business is to pay off my truck and put the majority of the escrow into an account that pays interest. I haul glass and am in a dedicated run and stay busy. Even with the price of diesel I am making money as I have adjusted my operating that does reflect better revenue. Is there someone out there that can help with a 3yr loan?
        • Re: Small Business with good revenue needs equipment loan.
          LUCKIEST Guide
          Small Business with good revenue needs equipment loan, Welcome

          One thing about B of A Small Business online community, you meet a lot of interesting
          people and very diverse businesses.
          *How long have you been in business in **Bellevue,
          Texas??*
          Who makes the payment on the truck NOW?? You or the company??
          What happens to the 32% escrow??
          How new is the truck?? How long is the note for??
          Not sure I understand. You want to pay me interest so that you can make interest
          on your escrow?? It might cost you more.
          Please explain, Thanks, LUCKIEST
            • Re: Small Business with good revenue needs equipment loan.
              capizzey Newbie

              I have just recently gotten my LLC, and opened my business account. I have been with this company for 2 years but have been a truck driver almost 30 years. I work out of Wichita Falls, Tx. Bellevue, Tx is my son's home where I receive my mail and occasionally lay my head down.

              The truck is a 2005 Peterbilt. It was originally purchased by my son with a hefty help from me. The down payment was from inheritance we received when my Mother passed away. My son ran it until last September when he decided he didn't know how to be an owner/operator. At that point he sold it, unbeknownst to me, to the company that I am with. This upset me greatly, as the money that purchased it originally was half mine, and I entered into a contract to make the payments. The contract is for 60 months. I pay $1445 a month to the company. I am making money with it but have no control over the escrow which is upwards of $6000 a month. I gross about $18000 a month. With that kind of money going into a non interest bearing account it is reasonable to me to want that money working for me as hard as I am working for it. The truck is very beautiful and in excellent condition. It is show quality. I want to add an alternate power unit to it so as to cancel out any idleing time and increasing revenue. I also want to add the Turbo3000D to increase my mpg.

               


              Once the truck is out debt with them the escrow will drop to 10% to cover base plates, insurance, and taxes. I have proven to many people already that you can make money in todays market.

               


              My plan is to repay a $100,000 note in 36 to 48 months.

               


              Any other questions I will be happy to address.