SBA Loans
- Thread starter mjc
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dduffee260
Senior Member
- Location
- Texas
Re: SBA Loans
How large of a project are you talking about? I used to borrow on contracts and discount my vendors. But this can be very tricky, you think you are making money when in fact you are borrowing it. It seems like as soon as you finish the project you can pay off the notes. But as almost always there are snags and the project drags. So when the snowball rolls down to the bottom of the hill it has vanished. I found out that I demand payment from my projects. I have not borrowed on a project in 8 years although I had a note set up just two months ago because a GC owed us some money and I thought I was going to need operating capital. But since other more reliable customers paid up I did not borrow on the note, what a good feeling !!....Why borrow if someone owes you money?......As far as the SBA I thought about it but decided they want to be in your business too much, they want to tell you how to run things. The interest rates are not better, I decided to stay away from the SBA. But if you must borrow just find a decent banker and be very careful with the loan proceeds. The notes will pile up much faster than you can pay them off. Good Luck !!
How large of a project are you talking about? I used to borrow on contracts and discount my vendors. But this can be very tricky, you think you are making money when in fact you are borrowing it. It seems like as soon as you finish the project you can pay off the notes. But as almost always there are snags and the project drags. So when the snowball rolls down to the bottom of the hill it has vanished. I found out that I demand payment from my projects. I have not borrowed on a project in 8 years although I had a note set up just two months ago because a GC owed us some money and I thought I was going to need operating capital. But since other more reliable customers paid up I did not borrow on the note, what a good feeling !!....Why borrow if someone owes you money?......As far as the SBA I thought about it but decided they want to be in your business too much, they want to tell you how to run things. The interest rates are not better, I decided to stay away from the SBA. But if you must borrow just find a decent banker and be very careful with the loan proceeds. The notes will pile up much faster than you can pay them off. Good Luck !!
petersonra
Senior Member
- Location
- Northern illinois
- Occupation
- engineer
Re: SBA Loans
I have heard about the same thing from people who have either had or looked into SBA loans. From what I can guess, they mostly loan money to people who are likely to fail so they like to meddle in your business to try and reduce their exposure.
I have heard about the same thing from people who have either had or looked into SBA loans. From what I can guess, they mostly loan money to people who are likely to fail so they like to meddle in your business to try and reduce their exposure.
Re: SBA Loans
Thank guys ,
Talked to others today and feelings are about the same . I was told before reading your reply's that the SBA keeps there nose in your business alot. These are people that pretend to be on the helping side but failure is what they are looking for. Oh! The project was just estimated at $280,800.00 and still need to add a few things. Going to check out the Banks and ask about a construction contract loan.
Thanks again, Mike
Thank guys ,
Talked to others today and feelings are about the same . I was told before reading your reply's that the SBA keeps there nose in your business alot. These are people that pretend to be on the helping side but failure is what they are looking for. Oh! The project was just estimated at $280,800.00 and still need to add a few things. Going to check out the Banks and ask about a construction contract loan.
Thanks again, Mike
macmikeman
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- Planet macmikeman
Re: SBA Loans
I watched a documentary about Spike Lee once. He applied for bundles of credit cards, used up all the cash advances on the cards, made his 1st movie, and it did well enough to make him a multimillionaire. I am not saying you should do this, but the point is "Think Different".
I watched a documentary about Spike Lee once. He applied for bundles of credit cards, used up all the cash advances on the cards, made his 1st movie, and it did well enough to make him a multimillionaire. I am not saying you should do this, but the point is "Think Different".
Re: SBA Loans
I am about to do the same thing ol Spike did. I don't owe anything on my 5 or so cards and right now I can write one of these checks I got to deposit the cash into my company account at 0%. I am not sure you can beat it. I thought about using home equity but first you have to have the equity and second if you default on the loan not only does your business go away but so does your house. I need some opinions though, and some more experiences. Ask the bank for any credit card promotions, I wouldn't necessarily mention anything about a business, they don't always mention all their fine print.
I am about to do the same thing ol Spike did. I don't owe anything on my 5 or so cards and right now I can write one of these checks I got to deposit the cash into my company account at 0%. I am not sure you can beat it. I thought about using home equity but first you have to have the equity and second if you default on the loan not only does your business go away but so does your house. I need some opinions though, and some more experiences. Ask the bank for any credit card promotions, I wouldn't necessarily mention anything about a business, they don't always mention all their fine print.
hardworkingstiff
Senior Member
- Location
- Wilmington, NC
Re: SBA Loans
Years ago I asked an Electrical Contractor that had been in business for 40 years what the secret to keeping a business going for that long. He said you should never do a job that you can't afford to not be paid for.
Well, I don't quite do that. What I do is not let a job get too far into my pocket. I don't usually deal with GC's. I try to get straight to the owner and I find payments come promptly. I think I'm in a pretty lucky position that I don't deal too much with GC's.
If it's a bonded job, there are ways to get a GC's attention.
Years ago I asked an Electrical Contractor that had been in business for 40 years what the secret to keeping a business going for that long. He said you should never do a job that you can't afford to not be paid for.
Well, I don't quite do that. What I do is not let a job get too far into my pocket. I don't usually deal with GC's. I try to get straight to the owner and I find payments come promptly. I think I'm in a pretty lucky position that I don't deal too much with GC's.
If it's a bonded job, there are ways to get a GC's attention.
macmikeman
Senior Member
- Location
- Planet macmikeman
Re: SBA Loans
Hey Justin, be careful and read the fine print. Most cards change the interest rate the minute you make a cash withdrawl from them. But there are still ways to deal with that also. I have used this method before to spec build entire houses, and manged to ditch out on most of the interest, but rapid repayment is a key part in this.
Hey Justin, be careful and read the fine print. Most cards change the interest rate the minute you make a cash withdrawl from them. But there are still ways to deal with that also. I have used this method before to spec build entire houses, and manged to ditch out on most of the interest, but rapid repayment is a key part in this.
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