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3 comments

Show Me the Money…Pretty Please

Posted May 15, 2009 7:20 AM

Times are tough. All indicators point to the fact that the recession won't be letting up anytime soon. As an engineering and/or HVAC contracting business owner, you no doubt have already discovered how difficult it is to persuade banks to issue short-term business loans. But you still must propel your business forward in order to survive. The answer lies in getting creative. If you've found yourself being shut out by the banks, but can't imagine cutting back on business, what creative ways have you uncovered for securing short term business loans?

The preceding article is a "sneak peek" from HVAC, a newsletter from GlobalSpec. To stay up-to-date and informed on industry trends, products, and technologies, subscribe to HVAC today.


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Guru

Join Date: Aug 2007
Location: Anyplace over 100 Deg F
Posts: 543
Good Answers: 21
#1

Re: Show Me the Money…Pretty Please

05/15/2009 1:11 PM

Loan Shark. At least they have better interest rates than the credit card companies!

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Power-User

Join Date: Mar 2008
Posts: 345
Good Answers: 1
#2

Re: Show Me the Money…Pretty Please

05/15/2009 3:18 PM

Yeeeaaahhh..! I don't argue with you on this. Not a Piece of Cake this 'Financial Crisis' globally, I agree! I'd tried came out with a 'modest formula model' about this but is probably not so good. We need a 'Plan' somehow I do know that 'money call money', definetetly.

I'd modified "Ohms Law" of relativity and tried to applied into such 'Financial Crisis' in an attempt to find out some explanation to it, but, I guess I missing some 'others factors' apparently with this model. AnyWay you all welcome to check this out and let me know later your view.

'Supply'

EconoFlow=-----------

'Price'

So, accordingly with this model having an steady state 'Supply' against 'Price' I don't see where should the 'Financial Crisis' exist at all. Since 'Energy Supply and Price' are been pivotal point as we saw before all over I then assumed that by having an steady state (Energy Supply-Which Ever Form,Gas,Fuel,Etc.) with a good low 'Price' at pumppoint we'll should be able to counteract such 'Financial Crisis' without much hesitation, I Guess. See, with these 'relatives factors' in balance, we'll should be doing a lot better, I Believe. But hey, Who know's?

Now, with Summer here for some reason the 'Price' tend to go higher as well, Hopefully not much, again anyHow, let me know if this make any sense at all; or if not or why? Allset Chief Easy Does It Now! Don't bring it to the bank yet I'm just Brainstorming for the heck of it. Something will give somewhere down the road eventually, I'll Bet!!!

EnergyTime,

MC

Power-User

Join Date: May 2009
Location: Upstate NY USA
Posts: 138
Good Answers: 6
#3

Re: Show Me the Money…Pretty Please

05/17/2009 1:02 PM

Shop around. While the banks (under considerable outside pressure) have tightened their lending standards, they need to loan out money in order to make a profit.

If you can get "30 days same as cash" or even 1% per month from your suppliers, can you work it that way? For bigger jobs, get the customer to set up an escrow account for the full estimated amount before you start the job, and bill off that as materials and supplies are delivered. Then use the payments as working capital until the bills come due.

Also, what are your friends and family getting on their short-term savings? 2% maybe? Sign a promisory note to make it all legal, and double their rate of return.

A good friend financed my Mom's "new" car for her at halfway between the highest savings rate she was getting and the lowest rate Mom could get on a car loan. They are both getting a good deal.

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