Need advice on choosing the right funding lender!

[Tow411]

Topic Originally created on Tow411 by jaytowing in April 2016:

 

I am a new start up business out in new york. I personally been towing for 8-9 years now but i just opened up my own company. I do get help from local companies and shops that calls me for tows but i am trying to get a loan for 30k - 40k in order to buy 2 trucks for my business. 
i am not sure who i can go to, in order to get that type of loan? all i keep running into are just 1 truck loans. I just want to get directed to the right lender! please help! 

i do roadside \ illegal parking \ repo and accident removal  i do get busy at times. just want to expand 

 

In Memory of NationalAutow who said:

There are more than enough lenders out there. The evidence is everywhere. I would look at more than there willingness to finance more than one truck. You need to make yourself "bankable" by being a good low risk.

Start with a hefty down payment (say 50%) on one truck. Work that well for 6 to 12 months and do not miss payments anywhere for anything.

You need to attempt to work your self into a situation where you become your own bank. That is truly where the money and the peace come in. IF you woke up tomorrow, had the phone ringing and a small fleet of paid for trucks you would smile from ear to ear all day long.

When you wake up every day and your first or second thought has to be on making that next truck payment, you will operate your business to serve that payment. You want to operate the business to serve you.

Grow with baby steps. IT will be solid growth that way.

 

jaytowing said:

thank you! good advice! i was just thinking i take a loan out enough to buy 2 trucks but used trucks so i wont kill myself on the payments. because where i opreate from there are soo many towing companies and they want to charge soo cheap just to get the calls! so i have to choose wisely 

 

builder2 said:

Think about it this way, you either have payments or maintenance, hopefully not both at the same time.

 

goodmichael said:

I hate to be a nay sayer, but with todays economy, and the prospect of the near future, it just might be advisable to take on the least amount of debt possible. Everyone wants to grow, but in this business you many times make less with more. Three times the equipment equals five times the headaches in this field. 

All equipment breaks down. That new truck is a used one once you sign on the dotted line, and it will quite likely have issues too. Good luck if you did not buy the chassis from a local dealer when you need to get it into the service rotation. Trucks of course need people to drive them, and people are, well, pretty unpredictable in how they keep their word. While there are many great drivers out there, many think that a pre trip inspection is setting the radio and ensuring that the climate control works.

If you really want to go into debt, then by all means follow your dreams.