Purchasing a bandmill on credit

[Pedalbiker]

Has anyone had any experience with the inhouse financing at woodmizer, or baker, or timberking?  Inquiring minds would like to know.  It won't be the deciding factor but could play a part in choices.

Thanks,

Pat

[DonE911]

I can't give the exact answers your looking for, but here's my 2 cents.

I thought about this option.  I decided against it becuase milling was only intended to be a hobby.  I was already making payments on another hobby ( fishing boat ) which after the newness of the boat wore off I decided that making long term payments on it was kinda stupid ( financially speaking ).

If I intened the mill to be a business and finaning fit my business plan it may have been a different story.  

I bought a logosol M7 ( that a I haven't picked up yet ) for cash to try my hand at this milling thing for alot less $$ and if the hobby grows into a business then I may think about a bigger more $$ mill and financing ( with a solid business plan ofcourse )

Someone here will surely have a more direct answer.....

[Engineer]

No experience yet, have a lot of other things to pay for first.  I paid ca$h for my old beater Woodmizer, but I'd certainly consider financing if the deal was right.  I'd also be far more inclined to take out an equity loan and buy a decent used one if all it was, was a hobby and not a business.

Basically:  
hobby = used machine, pay cash.  
business = new machine, finance and write off taxes.

[customsawyer]

When I bought my WM I was using it as a business. I am not one to be scared off by payments if the machine will make enough to pay for itself and a little bit for me. I allready had all the other epuipment that I was going to use with the mill so this helped alot. My main thought is that you must remember that getting a buisiness started and running smooth takes some time. I would ask my self if I could make the payments even if the mill didn't make anything for six months or so. I know that for me I have been doing this for only 30 months or so and some times it is still slower than I would like.  :(

[Furby]

I thought loooooooong and hard about it, but wanted to pay cash.
Thing is the intrest rate they charge is more then some credit cards. ;) ;)

But I'd still do cash again, for a hobby mill!

[Pedalbiker]

Thanks for all the replies, I understand about financing hobby items.  Been there and done that, this will be a side business so the cost of financing would be deductible.  I've got a lot of experience in the wood business but have been away from it for several years, miss the sawdust.

Thanks,

Pat

[WH_Conley]

Got my WM in 97 as a business, paid for it that way, off the top. Financing through them was straight up, nothing hidden, I would not hesitate to do it again. That's just my experience and opinion. Good Luck.

[DonE911]

Need one those new payment plans:

No credit check

Noth'n down

No payments till I can afford it  

No Interst even after I can afford it....

 ???

[Percy]

I have financed all my WM purchases(3 of em) with the Canadian WM financing. It has worked excellent for me. I dont miss payments and they dont bug me. One day the stuff is paid for and you are lookin at the brochures droolin at the new whizzbang :D :D Ive done it ....no regrets ;D ;D

[ellmoe]

I've bought four woodmizers and financed all with them. I have been very happy with their program. One machine that I bought was one step from a prototype and we had alot of problems with it. It was a remote and apparently the modules did not enjoy the Fla. heat and humidity! I can't begin to tell you how well they worked with me on it. Eventually, we asked them to trade out the machine and they did everything we asked of them. When I purchase new again, I will likely finance with them once more.
   I do agree that you need to be able to handle the payment without counting on mill generated income at the start.
Mark

[bull]

Lease it, write it off 100 %
 Hobby = parttime buisness / schedule C for taxes.

[Gilman]

I'm buying my WM through a loan.  I went to WM's financing first but was denied.  They referred me to an intependent business loan broker.  The broker they referred me to was great.  He looked into my credit and found out a credit card company was pinging me with credit rating requests.  I was at the bottom of a A ratting and they ping'd me until I went below an A... Don't get me started on that one.  WM financing was helpful and professional.

[Percy]

I'm buying my WM through a loan.  I went to WM's financing first but was denied.  They referred me to an intependent business loan broker.  The broker they referred me to was great.  He looked into my credit and found out a credit card company was pinging me with credit rating requests.  I was at the bottom of a A ratting and they ping'd me until I went below an A... Don't get me started on that one.  WM financing was helpful and professional.

CREDIT CARDS.......I hear ya Gilman. They are handy as ever but trying to get rid of their interference in your everyday business is like trying to shake a booger off your finger, :D :D :D pretty tuff

[WoodSmith]

Are those presto log type buggers stickier? 8)
Say Gilman did you buy your Woodmizer down in Portland?
I was just there this week looking at the LT40HD. they really seem to be a bunch a great folks there. When we talked about financing the salesman mentioned something about someone that they were going through for loans. He thought the interest rate was somewhere around 9%. If you wouldn't mind sending me an email I would be interested in finding out what your interest rate and terms are and who you had to get the loan through, if you don't mind sharing that info, if not thats OK too.
Happy Sawin'

[FeltzE]

I bought my WM in 96 I was flat broke finishing up a divorce. I'd been reshearching the sawmill(s) for over a year looking at all the options. I came up with a general business plan that layed out the estimated monthly payment plan over a 4 yr payment schedule then I estimated the cost to operate based on discussions with the manufacturer, then estimated the amount of labor it would take to make the payments.

My comparison went something like this $300/month payments,

$150/ mbf cutting fees, 2 mbf per day cut (capacity based on MFR data)

Estimated 25% of income will be applied to expences of operation.

So potentially one weekend a month would pay for the mill and turn a small profit, and 4 weekends a month would pay a good profit (best case)

I had this all on about 8 well organized briefing sheets showed the plan to Farm Credit and shook hands ... bought myself a new mill. Never looked back. Within the year I was averaging  $1000 a month income from the mill working most every weekend, and paid out in 2 yrs.

These days I consider the comparison of buying a new car, paying for 3-5 yrs on it for a comparable cost of a sawmill. The difference is the sawmill will out last your new car, and turn a profit over the life time of your ownership... That is if you put it to work!

Eric