Me either Tom. I got the same reply from my local bank on borrowing against my equipment. It was "Can't do it! No resale value on tech equipment." Jeesh!
Scott ---------- Original Message ---------------------------------- From: "Tom DeReggi" <wirelessn...@rapiddsl.net> Reply-To: WISPA General List <wireless@wispa.org> Date: Thu, 21 May 2009 19:27:09 -0400 >I've never found a lender willing to lend against using the in-place used >equipment as colladeral. >It is the biggest double standard. >I find it highly ironic that they'll use a car for colladeral that looses >50% of its value the day it leaves the lot, and has a rate of failure and >risk of damage higher than just about any product on the market, and it has >a huge cash burn (gas :-). but yet lendors won't put equivellent value on >wireless gear, that holds its value, Ebay boasting easilly 50% after 3-4 >years of use, even after fully depreciated. >I'll never understand the lending market. > >Tom DeReggi >RapidDSL & Wireless, Inc >IntAirNet- Fixed Wireless Broadband > > >----- Original Message ----- >From: <rea...@muddyfrogwater.us> >To: "WISPA General List" <wireless@wispa.org> >Sent: Thursday, May 21, 2009 1:55 PM >Subject: Re: [WISPA] Quesiton on Funding / Financing / Capital Availability > > >> Answers in-line. >> >> >> ++++++++++++++++++++++++++++++++ >> <insert witty tagline here> >> >> ----- Original Message ----- >> From: "Charles Wu" <c...@cticonnect.com> >> To: "WISPA General List" <wireless@wispa.org> >> Sent: Thursday, May 21, 2009 8:49 AM >> Subject: [WISPA] Quesiton on Funding / Financing / Capital Availability >> >> >>> With all the hype being generated by the stimulus bill, we have been >>> approached by a multitude of third party financial organizations that >>> have >>> a renewed interest in potentially financing rural broadband...now, >>> specifically, for WISPs, in the past, equipment leasing has been a very >>> popular option for financing, but in looking at our numbers over the past >>> year, I've noticed a marked decline in the amount of leasing that we do - >>> that said, I have the following questions for the listserv about >>> financing >>> >>> Assuming that WISPs are still need to buy equipment... >>> >>> 1. Are you able to just purchase equipment out of cash-flow organically >>> generated from operations >> >> Other than originally starting with our own personal seed money, that's >> what >> we've done. >> >>> 2. Have you gone to more traditional forms of money (e.g., bank / SBA / >>> RUS loans)? >> >> I could not qualify for any of them. >> >>> 3. Are you doing more vendor leasing programs (e.g., Motorola 3% >>> financing >>> deal) >> >> Never sought any. >> >>> 4. Have you not been able to borrow money due to the credit crunch (e.g., >>> not deploying as aggressively) >> >> My corporation hasn't ever been able to obtain hard money credit. In >> fact, the "credit crunch" start last Fall raised my "30+ day past due" >> amount from a piddly $1200 to at one time to almost $13,000 in just four >> months. That almost put us under, and we're still barely scraping by >> until >> our seasonally variable cash flow revives come August, with still several >> thousand on the books that's very slowly getting chipped away at. >> >>> 5. Are you holding off on deployments because of the economy >> >> No, we're holding off due to lack of cash flow. We have plenty of people >> waiting for us to build infrastructure out to them. >> >>> 6. Have you gone to Agility...<cough> Louie the loanshark =) >> >> After much discussion, being some of the first people Agility contacted, >> we >> have not done any business with them. In my estimation, they wanted >> control over our business and day to day decisions, which we concluded was >> both unwarranted and unwise. >> >>> >>> Or any other thoughts / comments on this topic? >>> >> >> WISP equipment is not really a "commodity" in that there is almost no >> market >> for it outside of the "maker-vendor" relationship. Other than Ebay, and a >> couple of people who attempt to do it piecemeal, there is no "market" >> which >> stabilizes the value of used equipment, making them a commodity you can >> borrow against. >> >> Perhaps it would be more useful, if vendors had the ability to get capital >> and create stable working and short term credit relationships with their >> buyers, kind of like the used car market. >> >> >> >>> -Charles >>> >>> >>> -------------------------------------------------------------------------------- >>> 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! 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! 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/ >--- >[This E-mail scanned for viruses by Declude Virus] > > Wireless High Speed Broadband service from Info-Ed, Inc. as low as $30.00/mth. 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