What are good rates?

[Cut it out]

Long time lurker and looking to buy some newer stuff. Banks are turning me down but I found a company that will lend up to 200k no problem but would like to know what are some good rates. I am not posting what they offered because I want to hear from people who have borrowed money and what they are paying to compare against the rate I got. Any info is good info, thanks.

 

[Landclearer]

If you buy from a dealer and buy new, you can get 0% sometimes up to 60 months in some cases. Mostly 3.5 to 5.0 depending in special incentives and so on.

 

[Deeretracks]

We're getting 3.9%

 

[CM1995]

Welcome to the Forums Cut it out!:drinkup

We got 4.0 % from Cat Financial on a used excavator.

 

[Cut it out]

I'm trying to buy from a private owner, used and was offered up to 200k no questions but 6-8% depending on amount. Thanks for the help guys.

 

[CM1995]

I'm trying to buy from a private owner, used and was offered up to 200k no questions but 6-8% depending on amount. Thanks for the help guys.

I wondered what the rates were for these business capital funding companies. 6-8% is not bad for 3rd party lending, especially if you don't have to sign a personal guarantee.

 

[Cut it out]

The lending guy I am talking to is really helpful and no pressure. Cant justify new prices for the amount of work I have so I think I will just go with it and see how it goes. Banks are a joke. It sure was easier years ago to get money it seems.

 

[PeytonM]

two biggest headaches in my eyes are insurance companies and banks. I wanted to start mobile welding when I was 21 and I got turned down by several different insurance companies because I was 21 and nothing at all to do with my ability, just my age.

 

[esamy]

Did you ever go through with the financing? and what rate did they provide you with?

 

[mxsledder]

What's everyone's take on the personal guarantee?
Cat financial made me sign one on my loan. Is this pretty typical?

 

[clintm]

What's everyone's take on the personal guarantee?
Cat financial made me sign one on my loan. Is this pretty typical?

it all depends on your history and net worth and amount you are borrowing and down payment . the 0% money is fake the manufacture just pays the % upfront to the finance company so if you sell the machine ,trade it or pay it off early that just extra money that the lending company makes

 

[ChuckatMatrix]

response

Long time lurker and looking to buy some newer stuff. Banks are turning me down but I found a company that will lend up to 200k no problem but would like to know what are some good rates. I am not posting what they offered because I want to hear from people who have borrowed money and what they are paying to compare against the rate I got. Any info is good info, thanks.

One man's trash is another man's treasure, it comes down to what makes business sense. Time in business, credit, collateral all play into your rate.
A company in business for 6+ years with good credit PGs will see far better rates than companies with less than 2 years in business and poor credit.

to answer the questions 6-8 for good credit and case by case basis for the latter

 

[Shimmy1]

Best we found this fall was 4.5% for a fixed rate. Another would give us 4%, but was a variable rate. Could change after 3 yrs on a 5 yr loan. We said thanks, but no thanks, and took the fixed.

 

[pafarmer]

I just got 3.0 on a brand new CAT CTL yesterday....and the same for a Fecon forestry head....through CAT....it all depends on what your credit record is .....if your history of paying on time is poor so is your intetesrt rate. The better it is , the better your chance of people competing for your business. It pays to have a stellar credit history...makes buying money easy!

 

[CM1995]

Best we found this fall was 4.5% for a fixed rate. Another would give us 4%, but was a variable rate. Could change after 3 yrs on a 5 yr loan. We said thanks, but no thanks, and took the fixed.

Smart.

Interest rates are going to be rising, if one wants to purchase equipment and have the ability the pay for it now is the time. Lock the fixed rate in. Personally I wouldn't be buying a piece of iron at the moment unless I know I can pay for it - I don't like some of the economic indicators we're seeing.

 

[OMB]

two biggest headaches in my eyes are insurance companies and banks. I wanted to start mobile welding when I was 21 and I got turned down by several different insurance companies because I was 21 and nothing at all to do with my ability, just my age.

When I was 19 I visited my banker, got a small loan, paid off on time, over time the amounts got larger, I was getting $30K on a signature (no collateral) this went on for years, all of sudden I needed financials and more( my banker pointed out that it wasn't me, the regulators had tightened the rules so this casual lending was no more), those were the good days.:usa

IMO, the way to deal insurance companies is insure for the big losses (high deductibles) and cover the little ones yourself. I am lucky to be from the 70&80's generation, to start out today would be so different.

 

[CM1995]

IMO, the way to deal insurance companies is insure for the big losses (high deductibles) and cover the little ones yourself. I am lucky to be from the 70&80's generation, to start out today would be so different.

Good advice and I do the same. Our deductible is $1000 on our inland marine/contractors equipment policy. The higher deductible gives us a better rate. The insurance companies like this as it's more profitable to them as catastrophic claims are rare although they do happen and I for one want to be covered for it if a piece of iron burns up or is stolen.

 

[movindirt]

Good advice and I do the same. Our deductible is $1000 on our inland marine/contractors equipment policy. The higher deductible gives us a better rate. The insurance companies like this as it's more profitable to them as catastrophic claims are rare although they do happen and I for one want to be covered for it if a piece of iron burns up or is stolen.

Exactly, I'm sure we all know the guy that turns every little thing in to insurance and in return their premiums are outrageous.

 

[Sean Vangill]

I would say anything under 9% is a good rate. I was formally a loan broker and for those with good credit (650 +) no red flags on credit history, more than 2 years in business and the business doing at least 100k+ in revenue and profitable I saw between 3-9% apr on 5 year terms. In all honesty though dealers themselves tend to have the best deals I actually lost quite a few potentials to the dealers themselves. Lenders want to know a lot of detail on your financial history where as dealers are more interested in the sale. Are you looking for a direct loan like SBA or are you looking to lease to own? If you shop around for rates make sure to ask before hand whether they will be doing a hard credit pull or soft credit pull because the more hard credit pulls the more damage you could do to your credit making financing even harder. If they give you round about number try to determine the rate yourself with a leasing calculator. It will put you a step ahead of them and show that you are prepared.

 

[Vogel002]

I would say anything under 9% is a good rate. I was formally a loan broker and for those with good credit (650 +) no red flags on credit history, more than 2 years in business and the business doing at least 100k+ in revenue and profitable I saw between 3-9% apr on 5 year terms. In all honesty though dealers themselves tend to have the best deals I actually lost quite a few potentials to the dealers themselves. Lenders want to know a lot of detail on your financial history where as dealers are more interested in the sale. Are you looking for a direct loan like SBA or are you looking to lease to own? If you shop around for rates make sure to ask before hand whether they will be doing a hard credit pull or soft credit pull because the more hard credit pulls the more damage you could do to your credit making financing even harder. If they give you round about number try to determine the rate yourself with a leasing calculator. It will put you a step ahead of them and show that you are prepared.

I am still in the industry and agree if it's a strong opportunity, if it has some hurdles then it came be a very difficult question to answer.

Cheers,
MV