Tom and Travis. If it's not too much trouble, why don't you rename the
thread like Scriv requested. When I do a search for line of credit in 6
months on the archive, I won't remember to look throught all the canopy
threads too. :)
Travis Johnson wrote:
Tom,
Like many on this list, we started out using personal credit cards.
And in the beginning, we did make the subs pay for the equipment.
However, we've been in business since 1995 and doing wireless since
1997. Also, you have to be willing to sign a personal guarantee on
the leases, at least in the beginning. But really, that's not any
different than any bank, which will do the same. You will also have to
start small (maybe $10k or $15k) for the first lease, and get some
payment history behind you. Then as time goes on, they will just get
easier and easier. ;)
Travis
Microserv
Tom DeReggi wrote:
Travis,
That is an interesting point. You are full of all sorts of clever
ideas. But how do you get past the, need to be in business for two
years to get financing, problem?
How do you manage that on the books? Doesn't it cost you more than
you are saving with the Lease terms? For a while I was doing cell
sites (payables) through a seperate company than Receivables
(Subscribers) for liabilty reasons. B ut I stopped it was to big a
pain in the neck to take care of two setes of books, and instantly at
a glance, see how the company is doing.
Tom DeReggi
RapidDSL Wireless, Inc
IntAirNet- Fixed Wireless Broadband
- Original Message - From: Travis Johnson [EMAIL PROTECTED]
To: WISPA General List wireless@wispa.org
Sent: Tuesday, December 20, 2005 12:27 PM
Subject: Re: [WISPA] Canopy buying group prices
The biggest problem is a bank will have a hard time allowing you to
continue to grow. With leasing companies, I can just continue to use
a new company each time, then not a single company takes all the
risk. At a certain point, the bank will just say no, and then you
will be stuck. :(
Travis
Microserv
Marlon K. Schafer (509) 982-2181 wrote:
Not true. We have a couple of different lines. They were hard to
get, we actually get run under a program for farmers, but we have
them.
Believe me though, I can't wait till I get rid of them too though!
Marlon
(509) 982-2181 Equipment sales
(408) 907-6910 (Vonage)Consulting services
42846865 (icq)And I run my own
wisp!
64.146.146.12 (net meeting)
www.odessaoffice.com/wireless
www.odessaoffice.com/marlon/cam
- Original Message - From: Travis Johnson [EMAIL PROTECTED]
To: WISPA General List wireless@wispa.org
Sent: Monday, December 19, 2005 5:04 PM
Subject: Re: [WISPA] Canopy buying group prices
True but no bank is going to setup a line of credit for a
WISP. It's just too risky... equipment is at hundreds of different
locations, they have no control over anything about it, etc.
Travis
Tom DeReggi wrote:
Not that I disagree with you, just that at the end of the day
what matters most, is who will lend you the money. From the
beginning of time, Banks have always been more strict on who they
lend to and for what than a leasing company. Sure, once you got a
good working relationship with a bank, great, but very few WISPs
will be in that position early on. Atleast that is what I have
seen to date. Revenue from a paying subscriber today, at just
about any rate, is almost always better than not having the
revenue from the potential subscriber at all. The arguement I
use is, if you get a customer just one month earlier, thats $50
more money you make, Almost a 12% saving right off the bat for
getting them installed a month earlier. If a finance company can
get the amount approved quickly, without a bunch of paperwork to
delay everything, I'd argue that they deserve the extra
percentages that they are getting on the deal. So my view is its
not about rate, its about flexibilty and speed. If I can get a
Line of Credit , that lets me take the money out in small chunks
paying the interest only on funds taken out, thats much better
than a low interest rate loan that I need to commit to a huge lot
all at once, to sit on the shelf.
Tom DeReggi
RapidDSL Wireless, Inc
IntAirNet- Fixed Wireless Broadband
- Original Message - From: Mac Dearman
[EMAIL PROTECTED]
To: WISPA General List wireless@wispa.org
Sent: Sunday, December 18, 2005 12:08 PM
Subject: Re: [WISPA] Canopy buying group prices
$12.00 X 36Mos = $420.00per CPE + loan costs, fees...etc
Sounds like to me you lost your good deal to the finance
company. I understand that they may be a necessary evil, but I
still say that you are far ahead in this game if you need to
have something financed to go to your local bank, borrow the
money there with all the added benefits of a much more sensible
interest rate, you can pay out early and not pay any of the
extra interest whereas
