Air drying 4/4 Red Oak

[Den Socling]

Actually, I know the problem. Smaller companies don't have the cash on hand and leasing companies are too darn tight with money.

[GeneWengert-WoodDoc]

Den,  if you were able to provide small companies with a business plan showing the financial benefits of using your kiln, and then the company could fine tune the plan with their specific situation, most banks, especially local ones, would provide a loan for the equipment.  However, the loan would require monthly payments.  Many operations do not have consistent cash flow income every month, so the company would have to have some cash reserves for slow times.  I suggest six months reserves for paying the loan, electric bills, purchasing green lumber, salaries, etc.  Banks will not finance inventory of dry lumber.  Stated another way, the drying operation is profitable but has poor cash flow compared to many other businesses.  In fact, poor cash flow is why many sawmills also go "belly up."

[Den Socling]

Gene, earlier this summer I met with a guy here at the shop. He has a good business and planned on making it a lot better with a vacuum kiln. He had a good business plan which included leasing a vac kiln. He was shot down. Why? Because hasn't been in business long enough. Money is too tight. I talked to a guy today for an hour and a half. He sounds like he has money and is sold on our kilns. He visited a 1.2 million dollar VacuTherm installation. They can't even dry Red Oak unless it's been air dried to 30%. Go figure! The 12/4 White Oak that I have been drying caught the interest of a very big group. I believe I am on the threshold.