Conversion financing... advice please?

[Topgeek]

I'm opening a new mobile division to my business that is going to require a "mobile office studio" to attend approximately 30 events (all over the nation) per year.

At first I was thinking that perhaps a car hauler with living quarters in the front half may be a solution, but I am not sure that the studio space would be large enough in this configuration (basically the unit needs as wide of space in the rear as legally possible, and then office space, and then living quarters up front)...

..but I'm getting sidetracked

I'm new to the board and have been very impressed on the quality of information here - you guys are great and I really respect how readily you share your experience.

I'm looking for experience on finding financing sources for a truckconversion or a tractor\custom trailor rig...

Any recommendations on the best way to approach it? As a business assett? Personal RV? Vehicle loan?

What type of collateral are most institutions looking for against a rig of this type that is in the ~100K to 150K price range? (i.e. do most financial institutions poo-poo on the idea of a custom rig being collateral because of difficulty in resale?) I immigrated to the US from Canada in the last year so I've very little experience in dealing with US institutions except that I know they made me put $30K in cash down to get a loan to buy my 2004 BMW M3 - which is preposterous considering I had exceptional credit in Canada and this car is VERY easy to resell as its collectable (apparently its worse to have no credit history than terrible credit history in the USA.. argh... bug I digress).

Any info is appreciated. I've been self employeed for 11 years and have always been patient and built my business with money in hand.. but I have an opportunity that requires a mobile rig rather quickly and I need to jump on this faster than "saving up for" will allow. I would really appreciate advice on how to best approach financing for a "custom mobile office studio vehicle rig-a-ma-jiggy" without having them laugh at me

cheers and tia,
Edward
p.s. unless anyone has spare cash laying around and would like to make an investment in an exciting cutting-edge business for a decent roi ... lol

 

[Warpath-TC]

Self employed - strike 1, no credit history - strike 2 & 3.

You are going to have a tough time financing one with decent terms if at all.

Anyway, mine was done through National City Bank, and they where very good about it, unlike Bank One (now Chase) My first one I paid for the used truck out right and that was used as collateral on the remainder of the loan. The second one I put alot down on it, again no issue arose.

I am sure others may have more info on this.

 

[Marc-TC]

Here is my $.03 of senslessness. If you can hook-up with a Major Leasing Company for instance Penske,Ryder etc. They will put a whole package together for you. They supply the Truck & Trailer It is there stuff you just lease it.They have fuel programs,drivers,paint & graphics anything you need or want. You supply the stuff that goes in it and operate it like it is yours. If you want a new one every two years you can do that to. Be prepared to spend double of what you think it is going to cost you. You are going to have to go "commercial" if there is any graphics or paint on it. If it painted up like
a "carney/circus wagon" forget it. 90% of all the Big Time Bands,Groups in the Music Industry does this when touring.

 

[KAYE RIVERCITY]

....Marc is completely correct very very very few musical people/bands/ concert shows etc. own[their credit is miserable-ask Willie Nelson] - they rent or lease.....that way it is completely deductable the first year.....you may loose money for 3 years in USA- but the 4th you better make it or you are dust business wise.....If you own it you can take it off for 4 years at 25% a year plus expenses.....get in touch with the local IRS and let them figure it out for you and the tax implications....or pay for tax advice from a private CPA or Retired IRS agent like I do.....eitherway you will have loopholes at your disposal and the wording of what you are using it for is soooo important......Money for financing is available through private sources-[they are callled "loan sharks" and we get to keep 100% fincancing each week depending on your credit rating with us![j/k]] anyway there are plenty of private finance companies for that type of investment......hardware is easy to insure the bigger the better....and you pay the insurance through the loan group and they get a kicker for the business......geofkaye