Has any one financed a mill through woodmizer?

jdw · September 01, 2016, 09:36:44 PM

I've been looking at the woodmizer lt35hd and 99% sure I'm gonna buy one. Went to my bank to see about the loan they didn't seem to thrilled about loaning 23,000 on a sawmill. So I went through the whole spill with them they eventually said we will loan the money but you have to show it will pay for itself before hand😟 Not sure how your supposed to do that lol. So I call woodmizer to see about there financing they seem like good people to work with but the interest seems kinda high @ 9.9%. But I plan on paying off after the I sell my Frick and Norwood at the sawmill auction in February so Intrest is not a big deal. Any one know what paper work you have to have for woodmizer? Are they hard to finance through? I have good credit I'm just kinda wondering what to expect.

WV Sawmiller · September 01, 2016, 10:47:30 PM

Didn't finance mine through WM. I had some cash already coming I was going to use but my financial advisor pointed out I could make more on it from my investments than the interest on an LOC at my local bank would cost so I went that route. I think my LOC was a little over 3 and certainly less than 4 percent. I just pay back the LOC from my sawing income.

Everybody's situation is different. The WM folks are great and I love my LT35HD but I'd think there should be better interest rates out there if you shop around and aren't already over extended. Good luck.

ellmoe · September 02, 2016, 05:49:16 AM

I financed a couple of mills through them many years ago, fine to deal with, but interest is high. As an option, you might try a equipment leasing company, usually lower rates and only a couple of payments up front. Warning, check up on any leasing companies you deal with, some are frauds, especially, Calif. co's.
Mark

drobertson · September 02, 2016, 07:40:05 AM

Yes, back then it was a 700 buck monthly payment, an easy one to make so long as you are sawing and selling, if you become idle its an expensive toy to look at,

1Cross1WayLT15 · September 02, 2016, 02:26:14 PM

I just financed with WM 2 months ago. It was straight forward and very easy! My intention was to pay it off before the first payment was due, so I was not worried about the 9.9%. 25 days later I paid it off completely with no pre pay penalty. Interest does accrue per day. So, I think I ended up paying $30-40 total in interest. It was worth it!

jdw · September 02, 2016, 04:44:35 PM

25 days that's pretty good what ya been cutting?

clintnelms · September 02, 2016, 07:14:58 PM

Don't you have to be sawing as a business to finance with them? Or can you finance as a hobby mill.

jdw · September 02, 2016, 08:03:40 PM

Hobby can finance through them business goes through direct capital or atleast that's what they told me.

RPowers · September 02, 2016, 11:07:44 PM

I had my LT28 financed through them. The payment was easy and it started as a hobby mill. Once I got busy and decided to look at a larger mill the payments weren't going to be all that easy anymore, plus I've built my credit score way up so I was able to get a good rate on a lease thru my banks equipment side on the LT50. They are easy to work with, it was pretty painless to set up my Lt28's financing and my credit wasn't very good at the time.

RP

Chop Shop · September 03, 2016, 12:11:57 AM

Put in as much time as you can till Feb on that Frick and Norwood and take the loot earned by then and the auction and buy it outright.

Be debt FREE. It feels great. And a slow month cant kill you. Consider it a 9.9 percent raise. 8)

jdw · September 03, 2016, 12:23:39 AM

Problem is the Frick is dead I'm almost certain it needs a new husk. For the money I've spent on that thing could have bought a new woodmizer. So I'm gonna try to rebuild the husk before the auction. I couldn't cut the lumber I need fast Enuff on the Norwood. The grade lumber buyer said he wants a tractor trailer load a week. That's I believe 7500 bf of oak and if it's been cut longer than 7 days he will reject it. I just don't see any possible way to make this work while also working a full time job. That's the situation I'm in I hate to let this opportunity pass me up.

starmac · September 03, 2016, 02:27:13 PM

Just a thought, but if you are going to be under the gun sort of for a load a week, doing so part time, wouldn't you be better off looking at say a diesel LT 50 than a 35??

I would be afraid that I would be getting something and stuck with it for a while, when I really needed something geared for more production to meet my obligations.

jdw · September 03, 2016, 04:44:52 PM

Well the lt50 would be great. It's kinda one of those situations where you try to walk on the safe side I guess. I know I can make it with the lt35 money wise even if something falls through. If I go to the lt50 it's ify at best. I guess the fear of the unknown, however this guy that wants the lumber owns the company his grandpa started in 1921 they have a great reputation and they dry and ship massive amounts of lumber a month. So he said if I send good lumber he would buy all I could cut seems like a good offer to have.

red · September 03, 2016, 05:50:11 PM

Big Opportunities require big risks

Percy · September 03, 2016, 07:11:55 PM

I financed two mills thru woodmizer. First in 1997 and then 2003. The banks were willing but there was too many hoops to jump thu. No regrets.

On the risk thing, I cant see a well equipped LT35 costing more than a decent new American built pickup truck. For the most part, a truck doesn't earn anywheres near what the LT35 is capable of earning. Prioritize your budget/spending. The mill is a good investment IMO for anyone who likes the work and has access to logs.

stavebuyer · September 04, 2016, 06:54:54 AM

Keep in mind that you will need to saw considerably more than 7500' of total products to get 7500' of grade lumber. That's a tall order if your working by yourself. A fully automated LT70 with 2 helpers will cut 5-6'k Ft a day and as much as 10k cutting long logs. An LT35Hyd with dead rollers, single blade edger, and one helper about 2500' a day. I have both mills and those are hard numbers including lost time for breakdowns etc.

If you look around you will find wholesale markets that will take less than trailer load lots and during the winter grade lumber will "keep" longer than a week. Sawing alone the LT35 is a good choice and money spent on edger, decks, rollers, etc. will do more for production than a bigger mill without them.

jdw · September 04, 2016, 12:34:40 PM

I got to say I'm buying a new mill to try to avoid breakdowns. And as far as the wholesale markets I keep hearing about them but have never been able to find any. Any advice where I could look?

red · September 04, 2016, 01:21:08 PM

Keep sawing part time and making connections. Most guys find a Niche market where they least expect it. Also look into selling anything you don't need to put more money down on new equipment. Make a solid business plan but always be open to new ideas. Clear as Mud . If it was easy everyone would be doing it . Good Luck

jdw · September 08, 2016, 02:41:55 PM

Heard back from woodmizer today were good to go on the new mill. So I got to send a deposit and wait to pick it up.

tnaz · September 08, 2016, 02:50:26 PM

Good for you; what mill did you decide on? 8)

Good Luck in your future milling, 8)

Terry 8)

jdw · September 08, 2016, 03:54:56 PM

Still leaning toward the LT 35 hd

Chuck White · September 09, 2016, 06:34:54 AM

A friend of mine just bought a new LT35HD.

Very impressive and very heavily made!

4x4American · September 09, 2016, 07:02:23 AM

Quote from: jdw on September 04, 2016, 12:34:40 PM
I got to say I'm buying a new mill to try to avoid breakdowns. And as far as the wholesale markets I keep hearing about them but have never been able to find any. Any advice where I could look?

Look in the ads of the hardwood market report

OlJarhead · September 09, 2016, 10:36:33 AM

I used WM -- easy to work with and no problems at all. Yes the rate is high but the mill is paying for itself and will be paid off early (just over a year if it continues as is). I put down a decent chunk on the mill though, which helps, after a sold my LT10.

jdw · September 12, 2016, 12:16:50 AM

Well as I was about to put my down payment on the woodmizer my logger I get 99% of my logs off of called and said he's gonna retire. So I'm not sure what's gonna happen now gonna have to make some calls see what I can get worked out. I may end up out of business guess we will see. :-[