You looked at it different than I did,,,, sure he made 5% but his term was 6 months,,,, annualized out is 10%.Grandpa, if he turns 100,000 into 105,000 he made 5% not 10% if has a hot stock tip he probably could make 5k in a day!! I would finance the machine and buy the trailer cash. Most trailer loans due to the high risk are very high apr loans like 5-8%. Credit is good to have but everything is personally guaranteed so keep your debt as low as possible because if you go to get a mortgage they look at your debt to income ratio and too much debt is never good. I know from personal experience from buying my now second home.
Good luck with your new toys... I mean tools!
Is the trailer new?
I appreciate everyone's replies but I need to make something clear. It's not a question of whether or not I can do a personal guarantee... I can.
The point is that I am trying to establish credit under my tax ID.
The thing about credit is, it's a lot like a gun. Nobody needs it until they need it very, very badly.
I guess I was hoping that a credit vendor would reply, or that somebody you knew of a loaning agent I should call.
Debt is a tool you can use? Guess I can't see the reasoning.
This is so true. You need to know your banker on a first name basis. My banker has done some great things for our small company. All the tellers greet me by name and I do like wise. Stay away from the too big to fail banks.I would recommend forming a relationship with a small local bank. The kind where they will know you by name when you come in. A good relationship there will be worth more than the credit it builds.
Be sure not to be extended too much relying on credit, as your situation will change over time, and not always for the better. When hard times come and you are working for the finance company with no flexibility, your attitude towards things will change.
I am not saying don't finance, but not to get in too deep. Build slow and strong and don't be a flash in the pan.