Re: Equipment Financing - Holy Crap !!!

[Jim <alarminex@xxxxxxx>]

On Sunday, August 5, 2012 5:44:19 PM UTC-4, Bob La Londe wrote:
> As some of you might be aware I dabble in other fields, but this item kin=
d of overlaps. I've been doing some CNC machining making parts on the side =
for the last few years. All of my saleable work is done with desktop hobby =
level machines. My big holdup has really been that I just can't make many p=
arts on the desktop machines before I have to tear them down and rebuild th=
em. I do have some repeat customers though, and I do make a few dollars on =
it. I recently decided to try and step up a little bit and see if I could f=
inance a couple slightly larger more robust machines. Most outfits wouldn't=
 even talk to me since I have not been in the CNC machine business full tim=
e for atleast 2 years. (I don't intend to stop being a contractor anytime s=
oon.) I did have a few though that said they would be glad to finance new e=
quipment purchases... at interest rates from 45% to 60%. Wow! Well, I am gl=
ad to see that every industry has its opportunistic sharks. Not just the al=
arm industry. I decided it would be better to just sell some equipment and =
pay cash. Even at a loss on the equipment its cheaper than paying 45% or mo=
re on financing.

Hi Bob,

Don't know much about machining but I know that my machining customers most=
ly lease their equipment. They tell me ( as you have said ) that the cost o=
f financing has made owning, a thing of the past. I've only got one custome=
r that actually owns his equipment which are computerized screw and minitur=
ized milling manchines (These may have a better name but I don't know what =
it is). He's fortunate enough to be able to buy them outright though.