actually, I've been told the opposite. Buyers of your company want as close to zero liability as possible. Especially when they will probably come in and replace your gear with theirs. If the two seem to match, you only win bigger...
Loans / Leases / Credit Lines are BAD in the eyes of a potential buyer. And, who ISN'T building to sell right now ? The ones building to own / operate are going to get run out in the next 3 yrs. We're building to sell. Major network - owning all pieces. Banks have allowed us up to 50% face value of the equipment to borrow against for 18 months on a relatively higher rate of interest (9 or >), but collateral nonetheless... -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Tom DeReggi Sent: Tuesday, February 20, 2007 6:34 PM To: WISPA General List Subject: Re: [WISPA] For those in business just about a year... Lonnie, I do not controdict your comment. I have chosen your same path. I have zero financing, and own in full a half million dollars worth of hardware that is installed. I was just pointing out the compromise. I now have a $10,000 a year property tax bill. The bank laughs at me, when I try and use the installed equipment as colladeral for future funding. The only value that the installed gear has to me, is it enables me to serve clients and generate revenue. Meaning its better for me to own my company, and continue to receive my revenue that I have enabled to have come in. But I truly believe a company will appraise for more, if the gear is leased instead of owned. The truth is a leased radio generates the same amount of cash as an owned one. But just like a car, the second it is driven off the lot it loses half its value on day one. Nobody ever puts fair value on used gear, they don't look at it as a revenue enabler. However, when you lease, you have acheived finance and capitol, which is hard to come by, freeing up the buyer's capitol and borrowing capabilty. And showing a business model that is cash flow friendly optimizing survival. So if you are building to sell, lease the gear. If you are building to own, pay cash, and save every point you can. Because if you plan to stay owner, why do you have to justify anything to anyone at your expense? Tom DeReggi RapidDSL & Wireless, Inc IntAirNet- Fixed Wireless Broadband ----- Original Message ----- From: "Lonnie Nunweiler" <[EMAIL PROTECTED]> To: "WISPA General List" <wireless@wispa.org> Sent: Tuesday, February 20, 2007 6:01 PM Subject: Re: [WISPA] For those in business just about a year... > An asset is something that you own. I consider anything that is not > paid for to be a liability. An asset that you own can be enjoyed and > can make money for you. If it is paid for in a mere two to three > months is this not a worthy investment, especially if it can provide a > profit for years to come? > > Lonnie > > On 2/20/07, Tom DeReggi <[EMAIL PROTECTED]> wrote: >> > We own the CPE gear so we consider it an investment. >> > <SNIP> >> My view is, what good is an asset if no one will lend against >> it? > <SNIP> >> Good luck with your ventures. >> >> Tom DeReggi >> RapidDSL & Wireless, Inc >> IntAirNet- Fixed Wireless Broadband >> > -- > Lonnie Nunweiler > Valemount Networks Corporation > http://www.star-os.com/ > -- > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
