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Dump Truck and Equipment Financing

Discussion in 'Financing' started by ChevyKenworth, Dec 8, 2014.

  1. ChevyKenworth

    ChevyKenworth Active Member

    Joined:
    Dec 8, 2014
    Messages:
    30
    Location:
    South Carolina
    I'm looking to finance 2 dump trucks and some equipment to get my business started and want to know what to look for and the do's and don'ts in financing dump trucks and equipment.

    All ideas and suggestions welcome.
     
  2. rossaroni

    rossaroni Well-Known Member

    Joined:
    Feb 23, 2013
    Messages:
    105
    Location:
    SE PA
    My only "do" on financing is "DONT". Not until there is a steady record of work, 6 months expenses in the bank, and some repeat customers. Rent for a while. Let the yard deliver it. Make some money. Buy a used tag from a ritchie brothers auction ( I paid $950 for my 20 ton. It needed seals and new pads on one axle, and a rewire. It was ugly, but worked, and still does today). Then pick up your stuff from the yard with your LN8000 and your tag. Make some more money. Then buy something else. Always pay yourself first.
    I'm probably being Debbie Downer here, but alot of people think that you cant do it without owning that big piece of equipment. I've spoke with a few people who have "re-structured" (gone bankrupt), and they usually can tell you that the large piece of financed equipment that was going to make them a million was actually the straw that broke the camels back when a job didn't come in like they were hoping. The payment was still due.
    If I had to start over again, in hindsight, I would probably focus my efforts on acquiring support equipment before buying bigger items. Sounds backwards, but if I can buy a used jumping jack for 6 or 700, use it a dozen times (100 a day to rent from a yard, pays for the jj plus replacement), and now bank the rental that I'm paying to myself towards a hoe. If you used that jumping jack every day for a year, it'd put 26000 in your pocket for a hoe, and no interest payment.
    Business is pot roast. cook it long and slow and its awesome. try to do it quick in the microwave and it gets really tough
     
    Macneil likes this.
  3. Steve Frazier

    Steve Frazier Founder

    Joined:
    Oct 31, 2003
    Messages:
    5,634
    Location:
    LaGrangeville, N.Y.
    rossaroni makes some good points. When I had my small business running I started with some very basic tools which I was able to buy with my severance package from my former employer. I'd rent machines for jobs and when I was consistently spending more per month renting the machine than the monthly payment to own would be I would buy. Business was booming back then and it was tough not to succeed if you did quality work. Then in 2007 business took a nose dive here, I saw it coming and was able to pay off all my loans before it got real bad. I watched major competitors drop one by one because they had overextended themselves and their trucks and equipment were repossessed.

    I've said this because you've mentioned you're just starting up. Unless you've done some extensive market research that shows you will be successful be very careful about over extending yourself in this economic climate. I'm not trying to discourage you but instead caution you of the risk involved. I'd hate to read a year or two from now that you've experienced the same plight as my competitors.
     
  4. cabaker

    cabaker New Member

    Joined:
    May 5, 2015
    Messages:
    2
    Location:
    KS
    This website has a lot of good information on financing dump trucks... leasedumptruck.com Great place to start. Good luck with your business!
     
  5. ChuckatMatrix

    ChuckatMatrix Member

    Joined:
    Nov 24, 2015
    Messages:
    5
    Location:
    Downey, CA
    If it makes business sense do it. Example if I can make $10 with what i already have or if I can borrow $100, pay back $120, and make $200 I still make a profit larger than what i would have otherwise. It takes money to make money