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Tips on funding for a new business

Workaholic

Workaholic

ArboristSite Lurker
Joined
Apr 25, 2013
Messages
11
Location
Canada
Hello all,
I have been involved in arboriculture for the past 7 years, ISA certified, college educated and have been a crew leader for the past 4 years. I did 2 years of landscape work prior to my arboriculture career. I have been planning on eventually starting my own company once I felt confident and comfortable since I first got into this industry, I have acquired a lot of the necessary skills to complete jobs safely and efficiently and have a fairly good idea on how to appropriately quote jobs. I have spent the last couple months pricing out equipment, and reading up on what I need to have in order to start a tree company where I live (Ontario, Canada). I have applied for my business license number, plan on getting WSIB coverage and insurance prior to taking on jobs. I do have a rough business plan typed out to the best of my ability, but need a loan to actually get things started. I planned on going to a few different banks to see if they can offer any kind of a business loan, but after listening to some youtube videos on start up businesses it seems like banks are pretty resistant to loaning money to new businesses (understandably so).

So what I am asking is how did you guys get funding? Were the banks able to give you a loan and if so for how much and how much interest? I do plan on going in to at least ask them some questions but I'd like to have a better idea of what to expect before going in. Thanks in advance!
 
Workaholic

Workaholic

ArboristSite Lurker
Joined
Apr 25, 2013
Messages
11
Location
Canada
How much are you looking to borrow?
Depends how much I can qualify for, ideally $90,000 would allow me to purchase a used bucket truck and chipper along with some extra saws/rigging gear that will be useful. But I can get started with $28,000 - 35,000 to obtain a truck with a dump box and I will just rent a chipper as needed and finance the additional equipment myself until I can show that I am generating a good profit to access more funding for a bucket truck and chipper.
 

ATH

Addicted to ArboristSite
Joined
Nov 18, 2006
Messages
4,428
Location
Ohio
A few thoughts (You are in Canada, so some things may be different)

A) Do you NEED to borrow? Can you start with less equipment and buy it as you go?
B) Here there is a Small Business Administration that helps startups. I met with them when I was starting, and they really directed everything towards how to borrow money. Does CA have such an agency?
C) Do you own your house? Enough equity there to take out a line of credit or second mortgage? More risky, but may be the only way to get your hands on a loan depending on other circumstances???
D) Avoid borrowing money if you can at all...
 
Workaholic

Workaholic

ArboristSite Lurker
Joined
Apr 25, 2013
Messages
11
Location
Canada
I own my house but do not have enough equity built up just yet, I bought it only a couple months ago. I cant do too much to get started without at least a chipper truck and some more equipment.
 

ATH

Addicted to ArboristSite
Joined
Nov 18, 2006
Messages
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Location
Ohio
A modest pickup (or even SUV) and a dump trailer is a lot cheaper than a chipper and chip truck...
 
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