Re: Equipment Financing - Holy Crap !!!

["Bob La Londe" <none@xxxxxxxxxx>]

"Jim" <alarminex@xxxxxxx> wrote in message
news:f94439ae-ca87-4d6d-a8c3-f4ff0420f4b1@xxxxxxxxxxxxxxxxxxx
> 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
>> kind 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 parts on the desktop machines before I have to tear them down
>> and rebuild them. 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 finance 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 time for atleast 2 years. (I don't intend to stop
>> being a contractor anytime soon.) I did have a few though that said they
>> would be glad to finance new equipment purchases... at interest rates
>> from 45% to 60%. Wow! Well, I am glad to see that every industry has its
>> opportunistic sharks. Not just the alarm 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 more on financing.
>
> Hi Bob,
>
> Don't know much about machining but I know that my machining customers
> mostly lease their equipment. They tell me ( as you have said ) that the
> cost of financing has made owning, a thing of the past. I've only got one
> customer that actually owns his equipment which are computerized screw and
> miniturized 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.

When you are talking about a Haas that starts at $50K and can run upto $200K
I can see why.  I'm actually not looking at machines in that class and do
not really need them for the market niche I have.  They would just be a
waste of space and energy.