Financing Woods equipment?

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ChoppyChoppy

Tree Freak
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Any recomendations?

In the past have tried local places and if it had to do with logging, I was about laughed out the door. (nothing with me, it's happened to other's as well, the banks don't like us loggers I guess)

Looking at upgrading my firewood processor. Can trade in my current machine and would need to come up with about $45-50k for the new machine. Would rather pay that over a few years than come up with it right away out of pocket and have things really thin for a while.

Yes, could save for a few years, but would really benefit (in income) from the bigger machine.

We get the usual emails and mailers for "we can get you $250k" or something like that. Usually ends up being like 50% interest or some crazy fees. Would likely be better to get get a loan with the mob.
 
I would think the company you are looking at there firewood processor would have some lending folks they work with. Its that way in the AG industry. In Ag there are lending folks that only do AG should be some for logging too.

I've looked into those. 15-20% interest. Better off using a credit card!
 
Do you have equity in your home? Probably the best option as it’s going to come at a lower rate and the interest is tax deductible. Along these lines, check out credit unions. My local was 2% on vehicles (a few months ago). Really easy to get along with.
 
Do you have equity in your home? Probably the best option as it’s going to come at a lower rate and the interest is tax deductible.

Never been a fan of gambling the homestead on a business venture. While it is an option, you are in fact "all in" if you got that route. I believe the tax benefits have been restricted as well, something along the lines of only interest on $10k worth of loan being deductible. Not an accountant but you may want to look into that.
 
I've looked into those. 15-20% interest. Better off using a credit card!

I would wonder how anyone building firewood processors would think they could sell new machines with 15-20% interest. I paid that kind of interest in the 80's in the Ag industry. You can borrow money today on new AG equipment from 0 to 6% depending on the time period of the loan.
 
Never been a fan of gambling the homestead on a business venture. While it is an option, you are in fact "all in" if you got that route. I believe the tax benefits have been restricted as well, something along the lines of only interest on $10k worth of loan being deductible. Not an accountant but you may want to look into that.

If a man isn’t sure he can pay the loan he shouldn’t be borrowing the money in the first place. I’ve always deducted 100% of the interest on any home equity loans and or lines of credit I’ve taken for business. Been a lot more than $10K.
 
If a man isn’t sure he can pay the loan he shouldn’t be borrowing the money in the first place. I’ve always deducted 100% of the interest on any home equity loans and or lines of credit I’ve taken for business. Been a lot more than $10K.
Completely agree with your first statement.

I believe there are some deductibility limits that came with the new tax cuts. Not sure what they are.
 
I would try and wait till you can pay it off right away. Nothing more satisfying then being debt free and knowing how much you saved in fees.
It makes me sick to think how much money I threw away because I couldn't or wouldn't hold off until I had the money in hand.
 
If a man isn’t sure he can pay the loan he shouldn’t be borrowing the money in the first place. I’ve always deducted 100% of the interest on any home equity loans and or lines of credit I’ve taken for business. Been a lot more than $10K.

It'd be involving personal assets with business. No Bueno.

Plus if SHTF and things didn't work out I'd rather not be living on a cot by the woodstove at the shop.

I'm at a good spot now where I could use the bigger machine and the current machine is still low hrs enough it's trade in is about 75% of what I paid for it 5 years ago.
 
It'd be involving personal assets with business. No Bueno.

Plus if SHTF and things didn't work out I'd rather not be living on a cot by the woodstove at the shop.

I'm at a good spot now where I could use the bigger machine and the current machine is still low hrs enough it's trade in is about 75% of what I paid for it 5 years ago.

Then don’t complain about high interest. If you wouldn’t gamble on yourself why should a bank loan to you at a low rate?
 
How long will it take you to make the $40-$50k. Is it something you can save aggressively for a year or so and stay out of debt. Nothing personal, but I’m just trying for a debt free life.
 
I hate when people blast their houses. For most folks it is the one true equitable asset they have for emergencies and retirement. If crap ever hits the fan you can let everything go back and still have a safety net.

And also deductions have changed or are changing.
 
Then don’t complain about high interest. If you wouldn’t gamble on yourself why should a bank loan to you at a low rate?

Typically anything forestry related is that way from our trucks to our equipment we run everyday, a few months back we bought a new JD 1270 harvester banks won’t touch financing that machine one was the price two was the industry. Moral of the story you have to look around when it comes to forestry equipment a good first place is manufacture another is a logging conference, here in a few weeks Oregon is having a live in the woods demo that would be a great place to go see what’s available. Another option is Cat I’ve heard they do financing as long as they don’t produce the machine.


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