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  • #966005
    jazmor
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    im wanting to start up on my own as a owner/operator excavation

    as far as finance as a brief equipment will be +-30k and i would want to borrow an extra 10k to allow for start up ups and downs and insurances ect

    problem is im 23 i rent dont own a house and only have a few gran

    am i wasting my time trying to get the finance even with a good buisness plan

    i have spoken to people and i know i can get the work needed but they cant put it on paper as it can put them in a lagal obligation
    and i would not be getting into this sort of debt if i didnt know i would suceed

    so where do i look what are my chances

    #1015391
    jazmor
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    other option i have is to sell my car and buy the truck with that money than finance the 20k for the excavator and get a credit card incase i need more short term this is what a friend who is an owner operator has told me to do

    someone on here must be able to give me some guidance

    #1015392
    BizDr
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    one options (and it is not the best and I would only recommend it if this were your last resort) is to borrow from family and friends.

    Also get a pre-conditional order from the clients. Have on paper that “if you got the legals done, then you will get work”.

    I do this with a lot of my clients who have trouble raising finance. One clients needed $18 million for a defense contract. We simply got a pre conditional order from the defense department and were able to ascertain finance for the project.

    Feel free to PM me if you need anymore help.

    Regards
    Dominic

    #1015393
    jazmor
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    BizDr, post: 17496 wrote:
    one options (and it is not the best and I would only recommend it if this were your last resort) is to borrow from family and friends.

    Also get a pre-conditional order from the clients. Have on paper that “if you got the legals done, then you will get work”.

    I do this with a lot of my clients who have trouble raising finance. One clients needed $18 million for a defense contract. We simply got a pre conditional order from the defense department and were able to ascertain finance for the project.

    Feel free to PM me if you need anymore help.

    Regards
    Dominic

    getting it on paper is out of reach as they cant gaurantee work i know i will have work with them but they wont put it on paper as it could put them in a position they dont want to be in,

    as far as borrowing from family and friends that is also out of the question
    my mother in law has said she would go guarantor but i dont want to put her in that position incase she decides to take a different path in life

    #1015394
    timlea50
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    • Total posts: 19
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    Hi Jazmor,

    One option to put into the mix is factoring your invoices once the business has commenced.

    As you raise your invoices you can generate cash against the invoice instead of waiting 30-45 days. Couple of issues you will face :

    1) initially you may only have one customer – so the customer needs to be “Blue chip” – if the customer goes bust – they might drag you down with them …..(so be very careful who you do business with)
    2) you will need to prove the jobs you are doing have been completed – ie there are no stage payments involved.

    Given you will only have one excavation truck the options will be limited – but can certainly provide some additional cashflow for you on an ongoing basis.

    Good luck to all,
    Tim Lea
    Partner,
    http://www.cashstream.com.au

    #1015395
    jazmor
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    ok i have absoloutly exhausted all avenues and come up with and the only option that is
    get personal credit of 25k to buy a truck and excavator
    than keep my day job and excavate on weekends for about 6months to get my head around the buisness side as well and put all profits from this into a buisness acount running the machines and paying them off i can do from mt day job than in 6months or therabouts when the time is right leave my day job and go out on my own continue to do my current trade and excavation which eva has work and slowly work into excavation full time than in about 2years i should be ready to upgrade to better quality machines is this a good/bad idea way to approach it

    all feedback and disscussion and advice will be taken on board as i need it

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