Meeting with the Bank Manager
Posted 12 March 2008 - 12:44 PM
I've decided to bite the bullet and see if I can get funding for a steadicam. I'm off to the bank this friday and wondered if you guys had any tips or advice. Any figures about the industry that might help instill confidence.
I've already got my best and worst cash flow forcast and profit and lost statements in order along with a pretty sound business plan. Just wondered whether you guys had any pearls of wisdom?
Posted 12 March 2008 - 06:11 PM
Posted 12 March 2008 - 07:56 PM
More important to the bank will be how much you work, instead of industry statistics. When I purchased my first rig, I showed the bank how many days a month I was already working, vs. how many days would pay for the monthly loan commitment. It worked out to about 1.5 days per month on a 3 year term. Also mention that owner / operators are the norm, so work will naturally increase once you own a rig.
Since you are financing the package, go ahead and get everything you need. It will help your cash flow to finance a full package, instead of having to pull several thousand dollars out of your pocket for necessary items down the road. I see too many people saying, I'll buy that later, only to wish they had gotten it right away. Why shell out 100% instead of 30%.
Shop a couple banks as well. Interest rates, length of term, etc... are different, and sometimes negotiable. I have financed 3 rigs with the same bank, but more than once I have beaten them up on the interest rate, because I showed them what the competition was offering.
Posted 13 March 2008 - 05:23 PM
How much are you asking to borrow? I bought the flyer system which I thought was good for my first system.
Posted 14 March 2008 - 07:32 AM
Wish me luck!