lowe3ccc Posted May 3, 2009 Report Share Posted May 3, 2009 Does anyone know how the APQS financing works, how many years and at what rate? Link to comment Share on other sites More sharing options...
Mary Beth Posted May 3, 2009 Report Share Posted May 3, 2009 Since banks have tightened up a bit, things may have changed since I bought my machine 5 years ago. When I bought my machine, financing went through US Bank. I had to provide 2 years tax statements, a business plan, and I can't remember what else. I know I had several pages of information to fill out. I was able to fax the info and talk by phone with the loan officer. I was even able to make payments locally at a US Bank in our area, so no mailing of payments, but I didn't realize that until I was almost finished paying on the loan. I think the loan was a 5 year loan. Link to comment Share on other sites More sharing options...
Katydids Posted May 3, 2009 Report Share Posted May 3, 2009 We use Bank Iowa now and it is a 2 page application with a 24 hr return. The last time I checked (recently) it was either 8.25 or 8.5 %. You can finance for 5 years or shorter if you desire. The will finance 80% of the cost. It is a simple application, not asking for the info that Mary Beth had to do. No business plan necessary. I have the application form that I can email you if you need it, or your local rep should be able to give it to you if you are working with anyone. Link to comment Share on other sites More sharing options...
Mary Beth Posted May 3, 2009 Report Share Posted May 3, 2009 That sounds much better than the finanacing I went through. I thought I would have to give my first born before it was all over.... Link to comment Share on other sites More sharing options...
lowe3ccc Posted May 3, 2009 Author Report Share Posted May 3, 2009 thanks, that is hlpful. I can't stop my brain from thinking about purchasing. I want it so bad, but need to be sure I don't over do it. I understand it can also be a great tax write off, have you found that to be true Link to comment Share on other sites More sharing options...
ffq-lar Posted May 3, 2009 Report Share Posted May 3, 2009 Hello and welcome to this great place! Research, research, research please if you will be financing a machine. Not just where the money will come from and the monthly payment, but how you will re-pay the loan. Will a day job support you and make the machine payment during the slack times while you build the business? Is there a need locally for your business? Do you have a supporting husband/partner who will encourage you? Please check with a CPA before letting the "tax write-off" sway you. You may depreciate your machine over a specific length of time, but you must have a business started and customers paying before depreciation will reduce your owed taxes. My state will allow a certain number of years of operation before being "profitable" and after that your business is considered a hobby. Then all the tax benefits of owning a business are gone and you may be required to pay fees and fines to the tax man. Please don't let me discourage you on your journey--it's a "meant-to-be" thing for many. Just have eyes open and a plan in place and things will work out. Let us know how things progress. Link to comment Share on other sites More sharing options...
Bonnie Posted May 3, 2009 Report Share Posted May 3, 2009 Tax write offs totally depend on each state, county, city or township not to mention Federal as they each have their own set of rules....some will let you have a certain percent of purchases as write offs, some will let you have a flat fee per year that you can write off and some will let you take 100% for a certain amount of years while you are getting established and then a new set of rules apply. You will need to research all that as well. Some will make you charge a sales tax on your services and you will need to collect that and turn that in each month...where other states feel our business is a service and they don't demand taxes on service businesses. You have your work cut out for you...its not as easy as just to set up shop and then open the doors..there are in some cases a lot of up front money that goes into place before you can EVEN open your doors. Some states even make you declaire a personal property tax on your machine and you have to report your intake and then pay a percentage of that plus the machine tax and or other rules apply. Then you get into insurances and bonding licenses if they are demanded by your county, state or City....and neither of these are cheap... Like Linda said, not trying to poopoo your dream, but its a bit more than just saying your in business.... Link to comment Share on other sites More sharing options...
stitchinsally Posted May 4, 2009 Report Share Posted May 4, 2009 Also, read the documents that it does NOT have a prepayment penalty. I went thru US Bank and did read my docs and knew that but, 2 years later decided it was stupid, stupid, stupid. Still paid off early but, they were not flexible at all about waiving the fee even though, I was an excellent customer. In fact, the Loan Officer was too chicken to even talk with me and had his secretary tell me. Want my opinion of someone who has done it - If you can't pay cash for the machine, don't get into the business. The tax write off does not outweigh the interest payment and other stresses of having a loan. And/or spend the time and go to either APQS, or one of the other companies, and take their 2 day beginners classes to really get a good feel for the machines and if it is something that you really want to do. Back 6 years ago the $ I would have spent on the classes many of the companies would have applied towards the machine purchase. If you read this forum, you know there are lots that are doing well in the business but, there are lots that are not and if you are in the later you may be stressing about making the payments. Link to comment Share on other sites More sharing options...
lowe3ccc Posted May 4, 2009 Author Report Share Posted May 4, 2009 YES!! I did it the financing was easy with the Spokane Teachers credit union, my payment is perfect. no prepayment penalty. I contacted my rep and now just have to wait. Thanks to everyone for their imput. Link to comment Share on other sites More sharing options...
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