If you are a leasing company why bother to extend leases to unknown entities when your current customers are already profitable and continue to expand their relationship? If I was the leasing company that Travis used I would be much more interested in providing another 100k to Travis than 50k to some other WISP I know nothing about. It is all about risk these days and known risks are way easier than unknown risks. If you are an unknown risk you better have excellent financials and pay your vendors on time or you can forget it.
-Matt On Jan 2, 2009, at 12:13 PM, Tom DeReggi wrote: > Travis, > > You are in a very fortunteately situation where you have reached a > level, where you can prove your self credit worthy to their standards. > I even had a conversation with some NY money guys last month, and > they are in big trouble. They are desperately looking for deals. > They have all this cash (billions) and no where to spend it or > invest it. But they'd rather sit on the money, than put it > somewhere they feel is not secure. The problem is that most WISPs > don;t get approved for leases as easilly as you do. They get some > leases upfront, until the value of their assets are already overly > committed to secure them, and they get stopped dead on expansion. > > What I'd like to see is a SBA Broadband Lease guarantee program, > that is easier to qualify for than traditional SBA guarantees, to > help open up lending to the WISP market. There is tons of money out > their, But its harder than said for most to prove themselves "credit > worthy". > > I'm seeing high risk lenders being more open to 1 yr leases. But > lenders are still concerned about 3yr leases, when they realize 3 > yrs is a long time, and plenty of time for a WISP to loose their > custoemrs to Comcast or FIOS. Expecially when grant programs are > talked about that might subsidize Fiber Optic deployment growth. > > Tom DeReggi > RapidDSL & Wireless, Inc > IntAirNet- Fixed Wireless Broadband > > > ----- Original Message ----- > From: Travis Johnson > To: WISPA General List > Sent: Thursday, January 01, 2009 11:47 PM > Subject: Re: [WISPA] Congress may help smaller ISPs grow > > > We have been charging the same for internet service for almost 5 > years.... and just two days ago, we got double the new sign-ups on a > single day of what we can do for installs. Business is booming in > our area and our industry. Just looking at our 2008 financials, our > gross revenues are up 15.2% and our Net Profit is up 10.3%. > > And I'll take the bet on being able to lease or finance equipment > in 6 months. How much shall we throw on the table? I have lease > companies calling me daily wanting to give me money... seriously... > I get 3-4 calls PER WEEK from all different leasing companies. They > all have money and want "credit worthy" companies to use it, because > that's how they make money. > > So again, how much shall we bet on this? :) > > Travis > Microserv > > rea...@muddyfrogwater.us wrote: > ++++++++++++++++++++++++++++++++ > <insert witty tagline here> > > ----- Original Message ----- > From: "Travis Johnson" <t...@ida.net> > To: "WISPA General List" <wireless@wispa.org> > Sent: Thursday, January 01, 2009 7:24 PM > Subject: Re: [WISPA] Congress may help smaller ISPs grow > > > You can not grow in large scales without financing... and I don't > understand why people are against it. Our last equipment lease was > under > 10% interest, no personal guarantees, no money up front. We were > able to > purchase a large quantity of CPE units (thus saving us about 20% off > the > single unit price). So, in the end, it actually saves money and the > "cost" > of installing a new customer is $0 to you, because the $99 > installation > fee pays for the time, materials, etc. > > Example: > single CPE = $190 each > 460 CPE = $155 each > > 36 month lease on $71,300 = $2,300 per month x 36 months = $82,800 / > 460 > units = $180 each > > But in 36 months, you might be able to charge no more than 10 > dollars / > month per customer. That's the magic of deflation - which is already > occurring. > > And it costs you $5 per month for 36 months for the equipment on that > customer... that's pretty cheap even if you only charge $29 per > month. :) > > Whatever happens in the future... It will NOT be the same as today. > Inflation or deflation will happen. No way around it. Congress has > already taken on more debt than can be serviced. Neither scenario > will > let you survive being in debt. > > Besides, don't expect to be able to lease equipment at any rate or > terms > within 6 months. > > > Travis > Microserv > > > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > > > > > ------------------------------------------------------------------------------ > > > > > > -------------------------------------------------------------------------------- > WISPA Wants You! 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