Tips on how to finance your
How to make
the big purchase
Finance manager Stan Ragley has more than
two decades of experience in overseeing the
financing of machines and has a wealth of tips
for buyers attending shows like IWF 2018.
Ragley preaches the “Five C’s” to customers
in an effort to make certain buyers are completely prepared and no stone is left unturned:
Capacity: Do you have sufficient cash flow
to service the loan?
Character: What is your credit history, both
personal and business?
Collateral: Do you have additional collateral
at your disposal? This could be inventory, A/R,
free and clear equipment or property that you
may need to secure the loan.
Capital: What is the net worth of your business and personal net worth?
Conditions: What is the purpose of the loan
and what factors should be considered? The
economy, new contracts, replacing outdated
equipment and employee reduction are all
examples of possible factors to examine.
Ragley reminds customers that it doesn’t
cost to get pre-approved. There are no fees to
submit an application or do the credit check
required during the pre-approval process.
Additionally, there is no obligation to use the
approval once it’s secured. While an approval
generally expires after 90 days, Ragley noted
that his department is able to get it re-ap-proved after that time period has elapsed.
Ragley added that little oversights could
cause big problems when the time comes to
move on a machine. He encounters many customers who, due to the size of their company,
don’t have CFOs or accountants monitoring
deadlines for simple things like paying an annual LLC fee to ensure the company remains
active. He advises those customers to do their
due diligence for credit related issues once
each calendar year.
“For small business financing, which is basically $5,000-500,000, it’s the same for everybody,”
he said. “We have to look at certain things
regarding their credit and if they’re not in order,
we have to ask questions. The biggest thing any
small business can do is have both their business and personal credit in order. Particularly for
a show, you don’t want to be waiting until the
last minute because it can be a very stressful
Source: Stan Ragley oversees the financing of
Biesse and Intermac machines for the United
States and Canada. For more information,
Stan Ragley, finance manager for Biesse and Intermac machines.