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Financing

jm62

Active Member
Joined
Oct 1, 2009
Messages
26
Location
Kansas
Does anyone know anything about Yellow Iron Financing out of SD? Aka as Premier Gold loan solutions. Are they a reputable company w/ reasonable rates or are they the last option like a payday loan company? My local banker is still runnig scared over the economy and doesn't see that yellow iron prices are as low as they have ever been. Now is the time to pickup some good equipment at below market value. With him running scared I need to find alternative financing, so I would greatly appreciate any input that I can get that will get me the equipment that will do the jobs that are lining up.
 

Speedpup

Senior Member
Joined
Jul 6, 2007
Messages
1,214
Location
New York
Occupation
President and all else that needs done!
I would shop the loans anywhere I could for the best terms and rates. If you have a good balance sheet it should not be a problem or should I say not impossible. I guess many are reluctant unless they have a ton of security to back it up. I too am looking but I won't take a loan and have and want zero payments in these trying times. Good luck on your venture:drinkup
 

jm62

Active Member
Joined
Oct 1, 2009
Messages
26
Location
Kansas
Thanks for the input. That is what I am doing but I don't want to get hooked up with a less than reputable finance company. What the bankers don't understand is that I can pickup a $40,000 piece of equipment for between $10-15,000 which puts me in a position to be able to work for a little less money while the economy is in the toilet.:Banghead The key is being able to work and to get work. I don't want a bunch of big payments that I can't pay for. I would rather have 1 payment that I can cover but without being able to be competitive in the work that I can do really limits the job chances.:beatsme
 

dayexco

Senior Member
Joined
May 21, 2005
Messages
1,224
Location
south dakota
if it's anything like premier bank card operation...i'd RUN as fast as you could. nothing else, have your atty/CPA review the loan docs before you sign a thing. premier card company, typically gives cards to those who have a hard time getting a card anyhere else, most of the time prepaid cards.
 

Kgmz

Senior Member
Joined
Mar 21, 2007
Messages
308
Location
Portland, OR & Eatonville, WA
Occupation
General Contractor
No they are not a reputable company. And there are a lot of other companies like this.

The way they finance you is by using your owned equipment as collateral. And they won't finance you if you don't already own a substantial amount of paid for equipment, usually at least a few million worth.

And as to why they all tout no financial statements, tax returns, etc. needed, and want clients that have been turned down and less than perfect credit. One the interest is going to be very high and two they are hoping you will fail. Because they are going to tie up all your assets with this loan and if you fail they will get the equipment you got the loan for and everything else you own. Also they will value your collateral at fire sale auction prices, and usually want 4 to 10 times loan to collateral value. With this much collateral to loan value and the fire sale valuation you can see how they can make a killing and hope you fail.

Banks I have used before and have been with for many years, Chase, Columbia Bank, Key Bank.

Here is link for Chase equipment financing.
https://www.chase.com/ccp/index.jsp?pg_name=ccpmapp/commercial/prod_serv/page/equipmentleasing
 
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jm62

Active Member
Joined
Oct 1, 2009
Messages
26
Location
Kansas
Kgmz I appreciate the heads up, you probably just saved my backside as I was getting ready to call them in the AM. Won't do that one for sure. have enough problem without a financier trying to stick me in the back while i'm watching the front. Don't know what I am going to do now but there is alway the option of dropping back ten yards and punting. I'll figure it out somehow but it won't be with them.
 

amunderdog

Senior Member
Joined
Apr 24, 2009
Messages
297
Location
Sunbright,TN
It is just like my Father told me years ago.
While you are out trying to make an honest living there is someone else in an office who spends all day figuring out how to screw you out of it.
Only thing that has changed; is now there are buildings full of those vultures.
 

xcavator120

Well-Known Member
Joined
Aug 2, 2009
Messages
60
Location
Kansas
Occupation
Equipment Operator
Banker is running scared for a good reason. Yellow iron prices are down because it's getting harder to get work, so contractors are having to liquidate to try and stay in business. Well the bankers do see this, and just have the question, how are you sure you're going to get work? Like Speedpup stated, if you can produce a good balance sheet, plus showing that you do have work lined up for at least the next year, he might relax a little.

Due to the uncertainty in the current and future state of the economy, I would not be buying if I really didn't have to. I'd try to hang on until things start to turn around. Prices may be good now, however this part of the country is just now starting to experience the slow-down/recession.
 
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jm62

Active Member
Joined
Oct 1, 2009
Messages
26
Location
Kansas
xcavator120, Thanks for the advice. I guess I forgot to tell you that I have been a salvage operator for over 25 years hauling scrap metal. Both pieces of equipment can serve double duty working both dirt and iron. I have shown him work lined up for a year in both iron and dirt. The problem is my personal credit is less that perfect but never on the business side, it is perfect. In fact my personal credit problems stem from saving my business when iron went belly up last year, but iron has recovered. I could spend the next year writing a new business plan for the expansion, go through the process of trying to get SBA garauntees. By the time that happens (not likely because of my credit) the equipment that I have found at such a good deal will be gone and I won't have enough funds to purchase even a track for one of them. I'm not asking for a hand out, I have a proven track record with this banker and he has taken risks on me before and I have never let him down. I don't fault him personally, I fault the banking system as a whole. The "new" banking regulations have made it so there is no way to loan money without an arm, leg, and you first born being put up for callateral. The government has effectively tied the hand of bankers and business and then wonder why the economy is in the toilet. No matter what you do in life, there will always be risk. Getting out of bed is risky. I have done everything possible to reduce the risk to him and his bank. And as far as the economy goes, we as business people are the ones that will be the stimulation for the economy. If we take the wait and see attitude like everyone else then the economy will never recover. I am not one to take the wait and see attitude, I have to much work to do to wait for a government bailout that will never come because I have not screwed a million people out of their hard earned money.
Sorry for the long post. It just annoys the heck out of me when someone tries to tell me to sit on my hands and wait for the economy to recover. The economy will only recover when we stop waiting and start doing. Even if all we can hope for is to break even or minimize our losses, we have to do something other than beating our heads against the wall hoping for a break and only getting a headache. Sometimes a little faith will go a long ways.
 

jm62

Active Member
Joined
Oct 1, 2009
Messages
26
Location
Kansas
xcavator120, I'm sorry if I sound like I am taking this out on you because I am not. I have read hudreds of post about people losing their businesses because of lowlife bankers (not all them fall in this group), or the less than honest people that are in this industry (look at the bid fixing in the UK) as in any industry. It has gotten to the point that an honest man can't make an honest living doing honest work. So again I apologize for being frustrated and taking it out on you guys. I appreciate having this forum and the last thing I want to do is offend the people that understand the most as to what I am going through.
 

jm62

Active Member
Joined
Oct 1, 2009
Messages
26
Location
Kansas
Well to start with I am sorry for blowing off steam at those of you who are only being honest with me and trying to help.
I have figured it out. I am selling the company to my daughter and son-in-law and I will manage it. Their credit is good enough to carry the business and the new to us equipment. The banker said he would be able to work with us that way. He said that with my experience managing the business and their credit we have a winning combination. Besides, at some point I was planning to pass the torch anyway. It is just happening sooner that planned but I will have the chance to pass on my experience to them before I am so old I don't remember it anymore.
Thanks again for everybodies input.
 

gradydortch

New Member
Joined
Oct 6, 2009
Messages
4
Location
mobile,al.
I'm looking for dump truck financing but only in my business name. Could u tell me how can i find a company that will finance my dump trucks with no personal guarantee ? Also, if u r looking for a good finance company try( eps funding group.com )
 

jm62

Active Member
Joined
Oct 1, 2009
Messages
26
Location
Kansas
gradydortch, Technically speaking if your company is or were to be a corporation, it becomes a viable entity that has the rights of an individual to seek and obtain its own financing. But with that said, someone has to be the fall guy for the corporation and guess what your it. The laws of incorporation were written to protect the assets of the individual from unfair seizure, while it does accomplish that, bankers have found a way around this protection. There lies the problem alot of banks insist that there be some type of personal gaurantee, something like a cosigner and that is where they get you because your personal assets are now securing the financing for corporation. Should the corporation fail, there goes everything. All this being said you are better off as a corporation because when it comes to litigation your personal assets are somewhat and in most cases protected.
Now with all that being said, I am not a lawyer nor do I claim to be one and I am speaking from my own personal understanding of Kansas Law and it may be somewhat different in your area. I would suggest that you seek out an attorney in your area that specializes in business law. I say this because Kansas and Texas both recognize an S corporation but in Ks it has a life expectency while in Texas it has none.
Let me explain one other thing there are two basic types of corporations. There is the S corporation which has the protection of the corporation and single taxation of a sole proprietorship. Then there is the C corporation which also has the protection of the corporation but pays taxes twice once as a corporation and then you pay taxes on the money you receive from the corporation. Then you can get into LLCs which are Limited Liability Companies and these are a whole drfferent can of worms.
The reason I am giving you so much information is that I want you to see that there is to much information for you to take just my word for it. Then the next thing I will tell you is, please go see your local SBDC (Small Business Development Center) (they are affiliated with most colleges), they are the business experts that will help you decide what is best for your company and then if you qualify they will refer you to the SBA (Small Business Administration), who can assist you in aranging financing.

Sorry, my fingers haven't said that much in a long time. And yes to those who are wondering if I am a college boy, the answer is, yes. It has been 9 long years and I will Graduate in Dec. with a Bachalor of Science in Business Management, but I have been going to the school of hard knocks for 47 years.
 

RTSmith

Senior Member
Joined
Oct 23, 2008
Messages
420
Location
Middle Tenn.
Occupation
Amateur demolition & dirt pusher
JM- Congrats on the BS! Your SOHK (School Of Hard Knocks) degree has probably taught you as much, but the BS is a great addition. Again congrats!
 
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jm62

Active Member
Joined
Oct 1, 2009
Messages
26
Location
Kansas
Thanks RTSmith, I appreciate the congrats. And actually the school of hard knocks has taught me one thing, to value the education that I have gotten more (for me) because I wouldn't have valued it as much then. It is amazing how much we think we know when we are young and how life teachs us just how dumb we really were. But those hard learned lessons are ones that we wouldn't have learned if we hadn't experienced them first hand. School is good but nothing replaces experience. Again thanks for the congrats.

P.S. I also hold an MBS (Master Bull_____er) and a Phd (Pile It Higher & Deeper). Both from the school of life. Major feild of study= onryness.
Life is too short to be that serious, enjoy the good things before their gone.
 

Steve Frazier

Founder
Staff member
Joined
Oct 30, 2003
Messages
6,599
Location
LaGrangeville, N.Y.
I received an email from a representative of Premier Gold this morning expressing his concerns about what has been presented here about his company. I invited him to join us and to refute what has been said, he has declined. In fairness, I'm posting an edited version of what he sent me. I've excluded his personal contact info and a portion that was indirectly related to this thread.
Premier Gold said:
Couple things:

We are nationally recognized and very reputable company. In fact the funders he recommends in his post are similar/clone funders that we use daily (actually I think ours are better because they are still consistently lending money in a tough environment). We offer the best rates and programs available to qualified clients. We do not take additional collateral as stated, that is a traditional bank/blanket UCC filing that a hometown bank would impose. We do purchase finance/lease, refi and lease-back. We take a specific interest in only the equipment we finance/lease/secure, we do not take millions of $$ worth of collateral as stated and we never wish failure upon any of our clients. Our business is built on repeat business and referrals, pretty tough to be successful when we are just putting everybody out of business according to kgmz. You do not have to own $2M in equipment again as stated; we do any qualified borrowers….start ups, people/clients that have never owned equipment, etc. Way too many assumptions and false information posted here. Kmgz appears to be very misinformed and not well educated on the subject and/or our business; …
Again, the representative from Premier Gold is welcome to join us at any time to enlighten us in this discussion.
 

jm62

Active Member
Joined
Oct 1, 2009
Messages
26
Location
Kansas
Thanks Steve for your post of Premier Golds rebuttal. I am willing to give anybody a fair hearing and do not want to discredit anyone. I asked for opinions and got just that opinions and each of us are entitled to have one. I don't think the individual's personal attack on kmgz was appropriate but again it was that individuals opinion. So far everyone I have communicated with seems to be quite knowledgeable and plenty fair with their comments. So please take all of these comments for what they are opinions, and take them as you will.
I appreciate all who have responded to this thread whether you comments were liked or not.
 

putzberger

New Member
Joined
Aug 31, 2009
Messages
1
Location
Houston
Your story happens too often. I have experienced bad customers like yours and your story reminds me of how the bigger the crook, the more they lie, cheat and act like this. Honest guys go to extremes to get the money or give you back the equipment. Two old says come to my mind when I was reading this.
(1) "A bad deal is a bad deal, is a bad deal" They never get better no matter how badly you want them to! Cut losses and get the machine back.
(2) "First loss is least lost" When it comes to repossession or collection, take whatever steps are needed to get equipment back before it totally disappears by being sold, seized taken by another creditor (no honor amoung creditors either), hidden (once had a debtor hide a machine on a barge that he floated to the middle of a harbor job only accessable by boat) the equipment damaged or disassembled for parts ( once saw only 3 machines runable out of 20 units when the machines were canabalized to keep the rest running. Glad you were lucky.
 
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