Anyone else get stiffed on orders?

[longtime lurker]

Thats awesome Red P  8)


LL idk how it works over there but can you look into getting a line of credit?

Banks aint real business friendly here right now: they'll lend you the money only if you didnt need to borrow it kinda thing. And I just dont trust this business... been in it too long maybe and I'm not afaid of debt but I would be very reluctant to use the house as security for a sawmill overdraft.

Debtor finance appeals to me... bank advances you money against the value of each invoice as it gets issued. Rates are around 6% which is about half of what they want for an overdraft. It would really work with where I'm at because my issue lies solely in having operating capital tied up in accounts for 90 days before i can use it to go again. Problem being that the bank aint interested in giving me that option unless my book is worth $500k + per annum in sales. This guy might just put me there but I got to do it now, and I need workin cash now... not in 12 months time when the sales history is already there like the banks want.

Banks just aint real business friendly here right now...

[4x4American]

Do you have any farm credit places?  Over here the lumber biz is considered ag and places like farm credit east are very flexible

[longtime lurker]

Here you might scrape a sawmill past as agriculture if it was a sideline to a larger agricultural enterprise. Logging and plantation related stuff is classed as agriculture, principally lumber sales would be retail. .. but a production mill is classed as manufacturing.

(Yeah seemed dumb to me too, but as we've grown i can see why it makes sense.?

[Magicman]

My tree farm (LP) owns my sawmill (LLC).  I do not sell lumber, but rather am providing only a sawing service and producing a product from the customer's logs.  100% Agricultural.  I am not paid and do not draw a "salary", so the sawmill's total income goes into the farm account.  I am reimbursed quarterly for all of my expenses.  It works quite well for me.   ;D